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Mrs. Tolstoy and her husband, Serge, are planning their dream house. Lot for house sits high on hill with beautiful view of Appalachian Mountains. Plans for house show size of house to be 2,900 square feet. Average price for lot and house similar to this one has been $120 per square foot. Luckily, Serge is retired plumber and thinks he can save money by installing plumbing himself. Mrs. Tolstoy thinks she can take care of interior decorating.

Following average cost information is available from local bank which makes loans to local contractors and disperses progress payments to contractors when specific tasks are verified as complete.

24% Excavation and framing complete
8% Roof and fireplace complete
3% Wiring roughed in
6% Plumbing roughed in
5% Siding on
17% Windows, insulation, walks, plaster, and garage complete
9% Furnace installed
4% Plumbing fixtures installed
10% Exterior paint, light fixtures installed, finish hardware installed
6% Carpet and trim installed
4% Interior decorating
4% Floors laid and finished

a. Determine the estimated cost for Tolstoy's house if they utilize contractors to complete all of the house?
b. Evaluate what cost of house would be if Tolstoys utilize their talents to do some of work themselves.

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M932734

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