Answer:
A) cost of building: land + lumber, supplies and other materials + labor= $55,000+$28,000+$20,000= $103,000
B) sale price x quantity sold
C) profit when selling the houses= price-cost of building-commissions
D) profit per house ($115,000-103,000-2,000=$10,000)
E) 8
F) $80,000
G) The unit is houses, the company do not loss nor win any money if sells 8 houses
H) The price for the bid must be above $107,000 to PDC earn money
Explanation:
A) For the cost of building must be added all direct cost as land, materials and labor
B) Revenue is the income generated from sale of goods or services
C) Profit is the money that is earned in trade or business after paying the costs of producing and selling goods
E) Break-even point is the number of units you need to sell to not loose money and achieve exactly $0 in profit
F) revenues 12*115,000= $1,380,000
- direct cost 12*105,000=$1,260,000
- fixed cost 40,000
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profit $80,000
H) direct cost 20 units*$105,000=$2,100,000
Fixed costs=$40,000
$2,100,000 +$40,000=$2,140,000 is the total of costs to be covered by price diveded for 20 units=$107,000
