Assignment Example | Topics and Well Written Essays - 250 words - 119

Assignment Example Malachai started the business when he was in college and now he owns and manages the small service-oriented business by providing price quotes, hiring student painters, purchasing supplies, and advertising their services. He currently employs 22 painters and pays them $10.50 per hour for painting and â€Å"prep-work† (scraping old paint, caulking, cleaning and removing bugs from the areas that are to be painted). In order to be profitable, Malachai has learned to provide superior service to his customers, including free price quotes. He builds in his profit-margin of 25% to all quotes by first computing his total costs, then adding 25% of that number to determine how much to charge the customer. Using his knowledge of the expenses for labor, supplies, and equipment, he has developed the following information: b. (5 points) The Marks family needs to get the outside of their house painted, including the siding as well as the white trim. Malachai estimates that area of the exterior of the house is about 8,000 square feet. Based on the condition of the Marks’ house he also estimates that he will need 2 workers for 8 hours to do the prep-work. How much should Malachai quote for the cost of this job, including labor, supplies, and profit? c. (5 points) Write a formula reflecting the price estimate for a house based on the number of square feet that need to be painted. Assume that Malachai can accurately estimate the painted area (in square feet) and the amount of time it takes to complete the prep-work on a job. d. (10 points) What do you think? Using the evidence from above, explain in a well-structured essay the importance of accurate cost estimates in a service-oriented business such as this. Research at least one other service-oriented business such as a restaurant, dry-cleaners, house-cleaning service and describe how they set