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8 Required information [ The following information applies to the questions displayed below. ] The Mac Davis Company specializes in the purchase, renovation, and resale
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The Mac Davis Company specializes in the purchase, renovation, and resale of older homes. Mac employs several carpenters and painters to do the work for him. It is essential for him to have accurate cost estimates so he can determine total renovation costs before he purchases a piece of property. If estimated renovation costs plus the purchase price of a house are higher than the house's estimated resale value, it is not a worthwhile investment.
Mac has been using the home's interior square feet for his exterior paint cost estimations. Recently he decided to include the number of external openingsthe total number of doors and windows in a houseas a cost driver. Their cost is significant because they require timeconsuming preparatory work and careful brushwork. The rest of the house usually is painted either by rollers or spray guns, which are relatively efficient ways to apply paint to a large area. Mac has kept careful records of these exterior painting costs on his last jobs:
tableHousetableSquareFeettableExternalOpeningstableCostsOpen$
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