calculate according to the assignment
Tehtävä 1
| Exercise |
| The following is known about the small construction company engaged in custom production: |
| working hours available 3600 h/year |
| fixed costs are estimated to be €30,000.00/year |
| according to experience, variable overhead costs are 8% of the value of a working hour |
| the company’s management sets the company’s profit target at €50,000.00/year |
| The company receives a request for tender for a construction contract and determines the following information: |
| Construction material for the contract €10,000.00 |
| the cost of a working hour is €27.00/h |
| the contract requires working hours of 100 h |
| total work trips for the contract between the place of business and the construction site 200 km |
| the mileage allowance charged to the customer is €0.70/km |
| the rest of the 3,600 h annual capacity hours are used for other contracts to be sold |
| a) Calculate the company’s total margin and hourly margin |
| Total margin |
| Hourly rate |
| b) Calculate the total price offer with value added tax for the construction contract based on the hourly margin principle. (24%tax) |