You are the sales manager for a construction company. Your company uses job order costing to determine costs for each construction job, since each is unique. You have a new customer that wants a construction project completed and is asking you for a price quote. You estimate the job will cost your company $23,000.

What price would you quote & why?

What did you base the selling price on?

Show any calculations and justify your decision on the quote price.

What factors other than cost must you consider?