Randy's Roofing is a city inde company specializing in replacing shingle roofs, Lately, a puzzled by the fact that though some of his job appear to make good money he doesn't but as profitable at the end of each month as he thinks he shend
In exchange for some work on your own roof, Randy asks you to help him better unders and how he can price his jobs better. He tells you his total costs are NO every number never changes. You ask him what are the different components of his costs and as shown below, together with what Randy says is a breakdown of where the costs are in
tivity
Replacing Shingles
Travelling to jobs
de Disposat
Expenses
Car
Salary
O
Office Work
$
Co
Total Allocation
En tells you that he does square metres of shingle roots every mon
kilometres to get to and from the jobs. Last month his crews did
he did a job for Leaky Eaves last month for $ and he allocated $
method of allocating costs which was an estimate of what he thought th
at the Leaky Baves roof was square metres and to get to the job an
Promotion for New jobs
way that ABC can help Randy understand whether the Leaky Eaves