The wages that would be required to be paid and the gross profit made from the job of fencing the one acre of ground are;
Wages = $486
Gross profit = $398
The process of arriving at the above values are as follows;
The details given in the question are;
The bid total cost of fencing the one acre, B = $1,729
The cost of materials, M = $845
The cost per hour per employee, R = $6
The number of employees, n = 3
The number of hours the installation requires when all three employees are working, t = 27 hours
The required parameters;
The wages amount required to be paid
The gross profit on the job
Method;
Calculate the cost of the wages and then the amount it takes to complete the job (total expenditure), and subtract the amount obtained from the bid amount
The total cost of the wages, [tex]\mathbf{C_w}[/tex] = R × n × t
∴ [tex]\mathbf{C_w}[/tex] = $6/(hr·employee) × 3 employee × 27 hr = $486
The wages cost, [tex]\mathbf{C_w}[/tex] = $486
The total expenditure for the fencing, Expenditure = [tex]\mathbf{C_w}[/tex] + M
∴ Expenditure = $486 + $845 = $1,331
The gross profit is the profit made after cost of production and selling cost are services provision cost are subtracted
The gross profit = Bid cost - Expenditure
∴ The gross profit = $1,729 - $1,331 = $398
The gross profit on the job = $398
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