Question: Custom Homebuilders (CH) designs and constructs high-end homes on large lots owned by customers. CH has developed several formulas, which it uses to quote jobs.
Administrative costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $20,000
Building costs per square foot (basic). . . . . . . . . . . . . . . $ 90
Building costs per square foot (moderate) . . . . . . . . . . . $ 150
Building costs per square foot (luxury) . . . . . . . . . . . . . . $ 225
Appliances (basic) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,000
Appliances (moderate) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $25,000
Appliances (luxury) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $45,000
Utilities costs (if required) . . . . . . . . . . . . . . . . . . . . . . . . . $40,000
Required
A customer has expressed interest in having CH build a moderate, 3,000 square-foot home on a vacant lot, which does not have utilities. Based on the engineering estimates above, what will such a house cost to build?
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