Question

The society of forest producers is planning to carry out an environmental impact study for an area in which the study involves 10,000 surface hectares. For this purpose, it is estimated to contract and acquire the following materials and equipment:

1. Rent of a drone with in cost or daily rent of $ 650.
2. Rent of 2 ATVs with a cost of $ 1000 per day.
3. 8 laborers with a daily wage of $ 250.
4. 2 field technicians with a daily salary of $ 750.
5. Purchase of 6 spray paints for weekly use at $ 56 each.
6. Purchase of 8 GPS with a value of $ 8500 each.
7. Rent of 2 vans to transport personnel with a value of $ 1500 per truck per day.
8. Payment of cabinet work to an external staff for the $ 4500 data classification.
9. Payment to an analyst for the data classification of Monte $ 7000.
10. Payment to an environmental engineer for signing the report, $ 30,000.
Field work to extract the data took 2 months.
Fuel was used for the equipment at a rate of $ 1500 per day.
Food is spent $ 1200 per day.
It is requested:
1. Determine the base daily cost by concept.
2. Determine the total production cost.
3. Determine the sale price of this environmental impact study if the expected profit margin is 100%.

Answer 1

Assumptions 1 month has 30 days and

Cost which are given on per month or per week basis, are converted into daily costs by dividing the cost by 30 or 7 respectively.

8 GPS of $ 8500 each, Payment of cabinet work to an external staff for the $ 4500 data classification, Payment to an analyst for the data classification of Monte $ 7000, Payment to an environmental engineer for signing the report, $ 30,000. are all costs for the entire two months of the study. hence to calculate the daily costs, we have to divide by 2 months that is 30 days.

To calculate the total cost. we just have to multiply the total daily costs with the number of days (60 days).