Hansel Corporation has requested bids from several architects to design its new corporate headquarters. Frey Architects is one of the firms bidding on the job. Frey estimates that the job will require the following direct labor.
Labor Estimated Hours Hourly Rate
Architects 176 $ 300
Staff 352 75
Clerical 825 20
Frey applies overhead to jobs at 175% of direct labor cost. Frey would like to earn at least $40,000 profit on the architectural job. Based on past experience and market research, it estimates that the competition will bid between $298,000 and $376,000 for the job.
1. What is Frey's estimated cost of the architectural job?
2. If Frey bids a price of $298,000, will it earn its target profit of $40,000?
3. What is Frey's Estimated selling price?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Hansel Corporation has requested bids from several architects to design its new corporate headquarters. Frey Architects is one of the firms ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Jameson works for fishy-mart corporation, a chain of superstores that sells large quantities of seafood. his job is to locate future sites for fishy-mart stores.
Answers (1)
Which business model seeks to reduce distribution expenses? A. shopkeeper B. subscription C. bricks and clicks D. cutting out the middleman
Answers (2)
Organizational culture consists of three levels: Select one: a. assumptions, orientations, and beliefs. b. beliefs, values, and artifacts. c. artifacts, assumptions, and beliefs. d. assumptions, artifacts, and values.
Answers (1)
Seven potential customers are interested in seeing a movie. Since the marginal cost of admitting additional customers is zero, the movie theater maximizes its profits by maximizing its revenue:Customer Maximum willingness to Pay AgeAllison $8
Answers (1)
Suppose a company charges an annual premium of $120 for an insurance policy for minor injuries. Actuarial studies show that in case of an injury claim, the company will pay out an average of $900 for outpatient care and an average of $3000 for an
Answers (1)
New Questions in Business
Has the company you're auditing recently increased or decreased their operations due to mergers or sales of parts of the business?
Answers (1)
Tom lives in an apartment where he pays $8,000 a year in rent. Sarah lives in a house that could be rented for $10,000 a year. How much do these housing services contribute to GDP?
Answers (1)
What happens to the percentage of tax as the income that is taxed?
Answers (1)
he terms of a percentage lease state that rent is 4% of sales up to $100,000 and 2.5% of sales over $100,000. Your business plan projects monthly sales to average $270,000 per month. There is a $250 per month maintenance fee.
Answers (1)
When ann taylor, a well-known retailer of sophisticated women's clothing, started losing sales to its own loft outlets that feature moderately priced casual clothes, ann taylor was dealing with the marketing phenomenon known as _?
Answers (1)