Question
andy's Roofing is a city wide company specializing in replacing shingle roofs. Lately, Randyhas been puzzled by the fact that though some of his jobs
andy's Roofing is a city wide company specializing in replacing shingle roofs. Lately, Randyhas been puzzled by the fact that though some of his jobs appear to make good money, hedoesn't seem to come out as profitable at the end of each month as he thinks he should. In exchange for some work on your own roof, Randy asks you to help him better understand hiscosts and how he can price his jobs better. He tells you his total costs are $220,000 everymonth and that number never changes. You ask him what are the different components of hiscosts and he lists them as shown below, together with what Randy says is a breakdown ofwhere the costs are incurred.ActivityReplacingShinglesTravellingto jobsOfficeWorkPromotionFor newjobsTotalAllocationCostPermonthWages80%20%00100%$160,000Shingles100%000100%20,000Shingle Disposal100%000100%5,000Truck Expenses0100%00100%5,000Randy's car0030%70%100%3,000Randy's salary0020%80%100%10,000Office Expenses0070%30%100%17,000TOTAL$220,000Randy then tells you that he does 5,000 square metres of shingle roofs every month and hiscrews travel about 2,000 kilometres to get to and from the jobs. Last month his crews did 200roofs. He also shows that he did a job for Leaky Eaves last month for $7,000 and he allocated$6,000 in costs, based on his usual method of allocating costs (which was an estimate of whathe thought the job should cost.) Randy said that the Leaky Eaves roof was 200 square metresand to get to the job and back to his yard was 150 kilometres.InstructionsSee If there is a way ABC can help Randy understand whether the Leaky Eaves made profit ornot. . YOUR answer must contain a paragraph advising randy of his outcomes
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