https://www.coursehero.com/u/file/21587310/14/

This is an existing document on coursehero, but the "draw the box around the question" is not functioning.

Just looking for some insight on 18 and 19 regarding what circumstances would Mr foster get more and less.

II. Units On Which Changed Work Had Not Been Performed Labor New work 95 hours Less estimated cost of old work 70 hours 25 hours @ $27.50 $ 687.50 Overhead @ 1 10% 756.20 Material $3,250.00 Less old material 2,650.00 600.00 Manufacturing Cost $ 2.043.70 G&A @ 6%% 122 60 Total Cost $ 2.166.30 Profit (@ 12% 259.90 Unit Cost of Change $ 2,426.20 * 60 units on which none of the work affected by the change had been performed * 60 $145.572.00 TOTAL COST OF CHANGE Item I Contractor Air Force $3.343.061.50 $1,665.786.50 Item II $ 695.520.00 $ 145.572.00 $4.038,581.50 $1,811.358.507. PROFIT Acknowledging that the profit, if any. to be allowed on the change was for the buyer to decide, Mr. Foster questioned whether the contractor was entitled to the same rate of profit on the change as on the original contract. QUESTIONS: 17. Do you think a contractor should receive the same rate of profit on costs associated with a change as on the original proposal?" 18. Under what circumstances might he get less? 19. Under what circumstances might he get more? Based on the foregoing analysis. Mr. Foster prepared the following estimate for the use of Mr. Stinson, the buyer. AIR FORCE ESTIMATE I. Completed Units Affected By The Change Labor Removing changed work 60 hours New work 95 hours 155 hours ( $27.50 S 4,262.50 Overhead @ 110% 4.688.70 Material 3,250.00 Manufacturing Cost $ 12,201.20 G&A @6% 732 00 $ 12,933.20 Profit @ 12% 1.$51.90 Total cost of change per unit $ 14.485.10 Number of units affected by the change (75 + 40) * 115 $1.665,786.50