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PROBLEM 1: (20 points) Southern Tier Heating, Inc. installs heating systems in new homes built...

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Accounting

PROBLEM 1: (20 points) Southern Tier Heating, Inc. installs heating systems in new homes built in the southern tier counties of New York state. Jobs are priced using the time and materials method. The president of Southern Tier Heating, B. T. Ewing, is pricing a job involving the heating systems for six houses to be built by a local developer. He has made the following estimates.

The following predictions pertain to the company's operations for the next year.

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Required: Southern Tier Heating adds a markup of 10% of the total charges (Time Charge and Material Charge) 1. Compute the invoice price with value added tax ( 7 percent) for the job described above. 2. Do you think the Time and Material Charge Pricing Technique can be applied to set up the price of the non-profit making organization? Why or Why not? Required: Southern Tier Heating adds a markup of 10% of the total charges (Time Charge and Material Charge) 1. Compute the invoice price with value added tax ( 7 percent) for the job described above. 2. Do you think the Time and Material Charge Pricing Technique can be applied to set up the price of the non-profit making organization? Why or Why not

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