You developed an overhead budget for a construction company. Historically, the companys construction costs are 89% of

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You developed an overhead budget for a construction company. Historically, the company’s construction costs are 89% of revenues.

What volume of work does the construction company need to achieve in order to make \($100,000\) of profit this year if they expand and hire the office manager and estimator? How much must the company increase their revenues in order to expand?

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