Question
Custom Homebuilders (CH) designs and constructs high-end homes on large lots owned by customers. CH has developed several formulas, which it uses to quote jobs.
Custom Homebuilders (CH) designs and constructs high-end homes on large lots owned by customers. CH has developed several formulas, which it uses to quote jobs. These include costs for materials, labor, and other costs. These estimates are also dependent on the region of the country a particular customer lives. Below are the cost estimates for one region in the Midwest: Administrative costs $ 22,000 Building costs per square foot (basic) $ 75 Building costs per square foot (moderate) $ 130 Building costs per square foot (luxury) $ 205 Appliances (basic) $ 17,000 Appliances (moderate) $ 27,000 Appliances (luxury) $ 47,000 Utilities costs (if required) $ 42,000 Required: A customer has expressed interest in having CH build a moderate, 3,200 square-foot home on a vacant lot, which does not have utilities. Based on the engineering estimates above, what will such a house cost to build?
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