ASSIGNMENT HELP | Mrs. Tolstoy and her husband, Serge, are planning their dream house.

Mrs. Tolstoy and her husband, Serge, are planning their dream house. The lot for the house sits high on a hill with a beautiful view of the Appalachian
Mountains. The plans for the house show the size of the house to be 2,900 square feet. The average price for a lot and house similar to this one has been $120 per square foot. Fortunately, Serge is a retired plumber and feels he can save money by installing the plumbing himself. Mrs. Tolstoy feels she
can take care of the interior decorating.
The following average cost information is available from a local bank that 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. What is the estimated cost for the Tolstoy’s house if they use contractors to complete all of the house?
b. Estimate what the cost of the house would be if the Tolstoys use their talents to do some of the work themselves

MODEL ANSWER

MAN 3583 Assignment 1

Estimated Cost for The Tolstoy’s House

In option one, the couples will use contractors for all the work. It is important to consider the applicable | PLACE YOUR ORDER NOW AT writtask.com | the estimated cost, we will have to multiply the square foot rate with the total square feet.  From the information given, the estimated size of the house is 2900 square feet, and the rate per square foot is $120. Therefore, the estimated cost is

 $120*2900 = $348,000

If the contractor is assigned all the | PLACE YOUR ORDER NOW AT writtask.com | , the estimated cost of the house will be $348,000.

1. Estimate what the cost of the house would be if the Tolstoys use their talents to do some of the work themselves.

The first step involves determining the cost- | PLACE YOUR ORDER NOW AT writtask.com | on the items that will be undertaken by Tolstoy’s

Interior decorations                   4%*348, 000 = $13,920

Plumbing fixtures installed        4%*348,000 = $13,920

Plumbing rough in                      6%*348,000 = $20,880

Total ……………………………………….  =$48,720

The second step is to subtract the cost saved | PLACE YOUR ORDER NOW AT writtask.com | of the house to determine the new estimated cost.

$348,000 – $48,720 = $299,280

Therefore, the estimated cost of the house, if the | PLACE YOUR ORDER NOW AT writtask.com | use their own talent to do some of the work, will be $299,280.