A roofing contractor's productivity decreases from 25 squares per day to 20 squares per day due to hot weather conditions. If the normal crew cost is $2,000 per day, what is the cost per square under the reduced productivity?
Correct Answer
B) $100 per square
Under reduced productivity conditions: Cost per square = Daily crew cost ÷ Reduced daily production = $2,000 ÷ 20 squares = $100 per square. This demonstrates how weather and other factors can significantly impact labor productivity and costs.
Why This Is the Correct Answer
The cost per square under reduced productivity is calculated by dividing the fixed daily crew cost by the actual reduced production output. Since the crew still costs $2,000 per day but can only complete 20 squares instead of 25, each square now costs $2,000 ÷ 20 = $100. This demonstrates how external factors like weather directly impact unit costs even when labor rates remain constant.
Why the Other Options Are Wrong
Option A: $80 per square
$80 per square would be the result if you incorrectly used the normal productivity rate of 25 squares ($2,000 ÷ 25 = $80), but the question specifically asks for cost under reduced productivity conditions.
Option C: $125 per square
$125 per square would result from using an incorrect production rate of 16 squares per day ($2,000 ÷ 16 = $125), which is not the given reduced productivity rate.
Option D: $150 per square
$150 per square would result from using an incorrect production rate of approximately 13.3 squares per day ($2,000 ÷ 13.33 = $150), which significantly understates the actual reduced productivity.
Memory Technique
Remember 'CUPS': Cost per Unit = Price ÷ Squares. When productivity goes down, cost per unit goes up - inverse relationship.
Reference Hint
Construction cost estimating chapters covering labor productivity factors and weather impact adjustments in contractor reference materials
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