Blake Cohen Painting Service specializes in small paint jobs. His normal charge is $350/day plus materials....

 

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Blake Cohen Painting Service specializes in small paint jobs. His normal charge is $350/day plus materials. Moesha needs her basement painted. Blake has produced a bid for $1500 to complete the basement painting. Blake completed a cost estimate for his service as shown. Direct material $200 Direct labor 700 Variable overhead 50 60 Fixed overhead Profit 100 $1,110 a. Moesha mentions that she can't pay the $1500. She is a widow and you feel an obligation to take care of widows but can't lose money. How much would you charge and still be able to make a profit? b. Moesha has asked you to paint the rest of her house. Could you continue to give her the same deal? Blake Cohen Painting Service specializes in small paint jobs. His normal charge is $350/day plus materials. Moesha needs her basement painted. Blake has produced a bid for $1500 to complete the basement painting. Blake completed a cost estimate for his service as shown. Direct material $200 Direct labor 700 Variable overhead 50 60 Fixed overhead Profit 100 $1,110 a. Moesha mentions that she can't pay the $1500. She is a widow and you feel an obligation to take care of widows but can't lose money. How much would you charge and still be able to make a profit? b. Moesha has asked you to paint the rest of her house. Could you continue to give her the same deal?

Answer rating: 100% (QA)

Solution a The costprofit data Direct Material 200 Direct Labor 700 Varia... View the full answer