Q 38

Steven owns a small boutique that sells products created by local vendors and artisans. He would very much like to update his store and will be hiring a contractor to complete the work. The contractor has informed him that the project will entail the following activities: Store design, 14 hours at $139 per hour; Carpet installation, 1200 square feet at $12.00 per square foot; Fixture construction, $111 per piece with a total of 21 pieces; and SG&A expenses, 19 hours at $41.00 per hour. This estimate will also include a 27% additional markup based on the total of the estimated job costs for the entire project. A competing bid has been returned with a flat rate of $18.00 per square foot of carpet installation that would cover the whole project. Which estimate would save Steven the most money? O ABC rate, since it will cost Steven $3109.12 less than the flat-billed rate O ABC rate, since it will cost Steven $2144.00 less than the flat-billed rate O Flat-billed rate, since it will cost Steven $2144.00 less than the ABC rate O Flat-billed rate, since it will cost Steven $3109.12 less than the ABC rate