Problem 1: (10 points) Methods of Estimating Costs: Engineering Estimates

Debarge Homebuilders (DH) designs and constructs high-end homes on large lots owned by customers. DH has developed several formulas, which it uses to quote jobs. These include costs for materials, labor, and other costs. Below are the cost estimates:

Administrative costs $30,000

Building costs-per sq. ft. (basic) 100

Building costs-per sq. ft. (moderate) 165

Building costs-per sq. ft. (luxury) 250

Appliances (basic) 16,000

Appliances (moderate) 28,000

Appliances (luxury) 50.000

Utilities costs 45,000

A customer has expressed interest in having DH build a moderate, 3,200 sq. ft. home on a vacant lot. Based on the engineering estimates above, what will such a house cost to build?