General Mathematics 2
Linear Modelling
Break Even Investigation
Part 1
Setting the scene:
LC Enterprises of Legana is constructing an apartment block of 12 units and has asked Jock, at Esk
Plumbing to submit costs to complete the bathrooms in
each of the units. Jock sends the following
costs to LC Enterprises whilst at the same time
checking to see whether he will make any profit for
the job.
= number of bathrom
Jock tells LC Enterprises that he will charge $16 780 per bathroom and will complete the work in
24 days. At the same time, he has to consider the following:
Variable costs per bathroom will consist of a Bath - $1000, Basin and Vanity - $1450, Shower
9159 enclosure - $1200, Toilet Suite - $450, Tiles and Tilers - $1870, Electrical - $1500, Tap ware - $470
and bathroom fittings - $1219.
Fixed costs which will consist of labour (2 workers) - 8 hours at $250 per hour ($125 per worker)
SS for 24 days, travel - an initial charge of $90 per day plus $4.50 per kilometre which is 14
kilometres each way from Launceston for 24 days and gas hire at $42 a day for 24 days.
S
00