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Hello Tutor, I have one question from bpp kit and its named “John Robertson”
extract:
“Robertson will need to be on site whilst the building work is performed. He therefore intends to do 800 hours of the skilled work himself. The remainder will be hired on an hourly basis. The current cost of skilled workers is $12 per hour. If John Robertson does not undertake the building work for this customer he can either work as a skilled worker for other builders at a rate of $12 per hour or spend the 800 hours completing urgently needed repairs to his own house. He has recently had a quotation of $12,000 for labour to repair his home. ”Why are the current cost of skilled labour(remainder hour) not taken into account as well as the income he can earn if the building work are not performed?
But they are taken into account in the answer.
What you have not copied from the question is the fact that 3,200 hours of skilled labour are needed.
The cost of his time (800 hours) is the 12,000 that he will have spend having his home repaired.
The remaining 2,400 hours will be done by skilled labour that costs $12 per hour – a total of 28,800.Both the 12,000 and the 28,800 are included in the answer.
(Which edition of the BPP Revision Kit are you using? This question is not in the current edition. If it is an old edition then be careful – the format of the exam changed and it is important that you are using a Kit that contains lots of Section A and Section B type questions (as well as Section C type questions.))
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