Discuss the below:
Q: Management would like to expand the current landscaping business by setting a new territory the current business is at peak capacity; therefore, all aspects of the business would be new There are currently 200 possible sites that marketing indicates could be customers. The new territory has an average distance of 50 miles from headquarters Each site would require service 1 time per week from May through October the work could be done in 5 days per week Marketing has forecasted some additional data. Each site would take 4 hours to complete Approximately 60% would be mowing and the rest edging/trimming Labor cost inexpensive @ $12.50 per hour the expected revenue for each site is $110 per service
Develop a cost estimate for that business. Management would like to see a structured approach to the estimate.