Question: A contractor has ordered 20,000 C.Y. ready-mixed concrete from XYZ concrete Inc. The order requires 2 months to complete (approximately 9 weeks). XYZ concrete Inc. has provided the following cost data about its concrete plant. Determine how much the unit price should be set in order for XYZ concrete Inc. to make a profit from this order.
| labor cost |
$48/C.Y.
|
| utilities and overhead |
$1200/week
|
| material cost |
$22/C.Y.
|
| equipment cost |
$400/ week
|
| transportation cost |
$13/C.Y.
|
| profit |
20% of the selling price
|