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) |