Task 1 Price Calculation

John Helverston is a painter and decorator. His overheads are $500 a week and he expects to work on average 40 hours a week. He has been asked to quote for a job which he estimates will take him 16 hours to complete.

The material cost for the job will be $250. Assume he includes a pay rate of $15 an hour for himself and builds in a 20% profit margin on top of his full cost.

1. Calculate the price for the job that Mr Helverston should quote to his customer. 2. What should Mr Helverston do, if a large construction and renovation services company bids against him and quotes a lower price (than Mr Helverstons price) for a similar painting and decorating job? Elaborate and discuss your answer.