Morley Fast, a contractor, built a warehouse complex in Canmore for the following costs: land, $12,000; concrete & steel' $34,500; plumbing & electrical, $48,990; general carpentry & roof, $42,340; and other expenses, $34,220.
Question1: What percent of the total cost is represented by each category of expenses?
Question2: When the project was completed, Morley sold the entire complex for 185% of its cost. What was the selling price of the complex?
Answer1: Land: 12,000/121,050 = 9.9%
Concrete & Steel: 34,500/121,050 = 28.6%
Plumbing & Electrical: 48,990/121,050 = 40.5%
General Carpentry & Roof: 42,340/121,050 = 35.0%
Other Expenses: 34,220/121,050 = 28.4%
Answer2: Selling Price = 121,050 x 1.85 = 222,567.50
Step 1: Calculate the total cost of the warehouse complex.
To find the total cost, add up all the expenses:
Total Cost = Land + Concrete & Steel + Plumbing & Electrical + General Carpentry & Roof + Other Expenses
Total Cost = $12,000 + $34,500 + $48,990 + $42,340 + $34,220
Total Cost = $172,050
Step 2: Calculate the percentage of each category of expenses.
To find the percentage, divide each category of expenses by the total cost and multiply by 100:
Land % = (Land / Total Cost) * 100
Land % = ($12,000 / $172,050) * 100
Land % ≈ 6.97%
Concrete & Steel % = (Concrete & Steel / Total Cost) * 100
Concrete & Steel % = ($34,500 / $172,050) * 100
Concrete & Steel % ≈ 20.07%
Plumbing & Electrical % = (Plumbing & Electrical / Total Cost) * 100
Plumbing & Electrical % = ($48,990 / $172,050) * 100
Plumbing & Electrical % ≈ 28.50%
General Carpentry & Roof % = (General Carpentry & Roof / Total Cost) * 100
General Carpentry & Roof % = ($42,340 / $172,050) * 100
General Carpentry & Roof % ≈ 24.62%
Other Expenses % = (Other Expenses / Total Cost) * 100
Other Expenses % = ($34,220 / $172,050) * 100
Other Expenses % ≈ 19.84%
Therefore, the percentage of total cost represented by each category of expenses is approximately as follows:
- Land: 6.97%
- Concrete & Steel: 20.07%
- Plumbing & Electrical: 28.50%
- General Carpentry & Roof: 24.62%
- Other Expenses: 19.84%
Step 3: Calculate the selling price of the complex.
The selling price is calculated by multiplying the total cost by 185%:
Selling Price = Total Cost * 185%
Selling Price = $172,050 * 1.85
Selling Price ≈ $318,342.50
Therefore, the selling price of the complex is approximately $318,342.50.
To answer the first question, we need to calculate the percentage of each expense category relative to the total cost of the warehouse complex.
Step 1: Calculate the total cost by adding up all the individual expenses:
Total Cost = Land + Concrete & Steel + Plumbing & Electrical + General Carpentry & Roof + Other Expenses
Total Cost = $12,000 + $34,500 + $48,990 + $42,340 + $34,220
Total Cost = $171,050
Step 2: Calculate the percentage of each expense category by dividing each category's cost by the total cost and then multiplying by 100:
Land Percentage = (Land Cost / Total Cost) * 100
Concrete & Steel Percentage = (Concrete & Steel Cost / Total Cost) * 100
Plumbing & Electrical Percentage = (Plumbing & Electrical Cost / Total Cost) * 100
General Carpentry & Roof Percentage = (General Carpentry & Roof Cost / Total Cost) * 100
Other Expenses Percentage = (Other Expenses Cost / Total Cost) * 100
Land Percentage = ($12,000 / $171,050) * 100
Concrete & Steel Percentage = ($34,500 / $171,050) * 100
Plumbing & Electrical Percentage = ($48,990 / $171,050) * 100
General Carpentry & Roof Percentage = ($42,340 / $171,050) * 100
Other Expenses Percentage = ($34,220 / $171,050) * 100
Calculating these percentages will give us the answer to the first question.
To answer the second question, we need to calculate the selling price of the complex, which is 185% of its cost.
Step 1: Calculate the selling price by multiplying the total cost by 185%:
Selling Price = Total Cost * 185%
Selling Price = $171,050 * 185%
Calculating this will give us the answer to the second question.