Question

When estimating a job to bid, a contractor’s estimator first determines the actual cost of labor using the function

L(h) = 28.75h, where h is the number of estimated hours it will take to complete the job. Next, the estimator adds the labor burden, which accounts for taxes and insurance, using the function B(L) = 1.78L. Finally, the estimator calculates the selling price, including the markup for overhead and profit, using the function M(B) = 1.43B.

Which composite function can be used to find the selling price for the labor portion of a bid based on the estimated number of hours?

M(B(h)) = 73.18025h
M(B(h)) = 51.175h
M(B(h)) = 31.96h
M(B(h)) = 30.53h

Answer 1

M(B(h))=78.18025h

Explanation:

First we have the following equations:

L(h) = 28.75h eq. 1

B(L) = 1.78L eq. 2

M(B) = 1.43B eq. 3

To find the selling price based on the estimated number of hours, we need to start replacing equation 1 in equation 2 as:

B(L) = 1.78*B

B(L(h)) = 1.78*(28.75h)

B(L(h)) = B(h) = 51.175h eq. 4

Finally, if we weplace equation 4 in equation 3, we get:

M(B) = 1.43B

M(B(h)) = 1.43*(51.175h)

M(B(h)) = 73.18025h

So, the composite function that can be used to find the selling price for the labor portion of a bid based on the estimated number of hours is:

M(B(h)) = 73.18025h