Billy paves driveways for residential homes. The average driveway costs about $900 to pave as...
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Billy paves driveways for residential homes. The average driveway costs about $900 to pave as determined below 5200 Overhead cost includes both fored and variable costs and it is allocated to each individual job at a rate of $1 of overhead per 1 of direct labor. Total overhead for the year is $5,000, of which $2.000 is fored. The remainder is variable and is directly proportional to direct labor. Billy has extra time and the capacity to do more jobs than he currently gets orders for. Currently, a customer has offered to pay $750 to have her driveway paved. This driveway is one which Bily defines as an average driveway. Required: The minimum selling price which Billy would change if he wishes to at least break even
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