Joe Bauer Inc. specializes in the painting

by | Mar 18, 2020 | Uncategorized

  

Joe Bauer Inc. specializes in the painting of older homes and employs several painters. It is essential for Joe Bauer to have accurate cost estimates so he can estimate painting costs before he accepts a job. Joe has been using the home’s square feet for his paint cost estimates. Recently, he decided to use the number of openings (total number of doors and windows) in a house as a cost driver since the cost of painting trim work around doors and windows is significant. Joe has kept records of his past 12 jobs:

Job Sq. feet Openings Cost ($)

1 2600 13 3300

2 3010 15 3750

3 2800 12 3100

4 2850 12 3150

5 4050 19 4700

6 2700 13 3250

7 2375 11 2800

8 2450 11 2800

9 2600 10 2875

10 3700 16 4100

11 2650 13 3200

12 3550 16 3950

Question: Joe has been offered a job to paint a 3400 square foot home with 14 openings for $4,000. If Joe has a minimum acceptable profit margin of 20% over cost, should he accept the job. Explain your answer?

  

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