Question

Your software development company is taking on a new project. You estimate that the project will take 500 hours. Ten percent of this time will be your labor, which costs $65 per hour. The rest of the labor is to be split between 3 members of your development team evenly. The head developer on the project makes $45 per hour, and his two assistants make $30 per hour each. What is the total estimated cost of the project?

Answer 1

10% of 500 is 50, 50*65 = $3,250

Rest of labor would be 450 hours, split between 3 members of the development team, so 450➗3 = 150 hours each.

The head developer makes $45 per hour: 150*45 = $6,750

An assistant makes $30 per hour: 150*30 = $4,500

Since it’s 2 assistants: 4,500*2 = $9,000

Now you add everything up:
3250 + 6750 + 9000 = $19,000

The total estimated cost of the project is of $19,000 dollars.