Calculate the total bid we should offer for a project with below info:
Construction material: $30/lb
Material needed: 10000 lb
PM salary: $100/h
PM hours: 200
Office space: $4000/month
Project duration: 6 months
Other overhead costs: 10% of direct costs
Administration costs: $10000
Profit: 20% of total cost
To calculate the total bid for this project, we need to consider the cost of construction material, project management (PM) salary and office space rental, as well as other overhead costs, administration costs, and profit.
1. Calculate the cost of construction material:
Construction material cost = Construction material price per pound * Material needed
Construction material cost = $30/lb * 10,000 lb
2. Calculate the cost of project management (PM) salary:
PM salary cost = PM salary per hour * PM hours
PM salary cost = $100/h * 200 hours
3. Calculate the cost of office space rental for the project duration:
Office space cost = Office space monthly rental * Project duration in months
Office space cost = $4,000/month * 6 months
4. Calculate the total direct costs:
Total direct costs = Construction material cost + PM salary cost + Office space cost
5. Calculate other overhead costs:
Other overhead costs = 10% of total direct costs
6. Calculate the total cost excluding profit:
Total cost excluding profit = Total direct costs + Other overhead costs + Administration costs
7. Calculate the profit:
Profit = 20% of total cost excluding profit
8. Calculate the total bid:
Total bid = Total cost excluding profit + Profit
Now let's plug in the numbers and calculate the total bid for this project:
1. Construction material cost = $30/lb * 10,000 lb = $300,000
2. PM salary cost = $100/h * 200 hours = $20,000
3. Office space cost = $4,000/month * 6 months = $24,000
4. Total direct costs = $300,000 + $20,000 + $24,000 = $344,000
5. Other overhead costs = 10% of $344,000 = $34,400
6. Total cost excluding profit = $344,000 + $34,400 + $10,000 = $388,400
7. Profit = 20% of $388,400 = $77,680
8. Total bid = $388,400 + $77,680 = $466,080
Therefore, the total bid for this project should be $466,080.