Orange Remodeling Service specializes in renovating older homes.
Last week the company was asked to bid on the following remodeling
job. The list of materials and labor needed to complete the job
follows. Materials Labor Lumber $ 5,000 Carpenter $ 4,000
Nails/bolts 200 Floor specialist 2,000 Paint 1,800 Painter 2,000
Glass 3,000 Supervisor 1,000 Doors 500 Helpers 3,000 Hardware 500
Total $12,000 Supplies 1,000 Total $12,000 Orange uses an overhead
markup percentage for materials (50 percent) and for labor (60
percent). Those markups cover all operating costs. In addition,
Orange expects to make at least a 30 percent profit on all jobs.
Compute the price that Orange should quote for the job.