Answer to Question #290767 in Algebra for Ella

Question

The estimate for building a summer cottage was 99191 €, out of which the share of building materials was 64136 € and the share of wages 17410 €. The rest of the money was reserved for other expenses. After the cottage was finished, the builder discovered that the cottage as a whole costed 26.7 % more than estimated. The price of building materials was 7.8 % higher than estimated, but the wages were only 83.1 % of the estimate. By how many percentage points did the proportion of other expenses out of the total expenses change? Remember to indicate a negative change with a minus sign (e.g. -10.55). The answer has 2 decimals

Answer 1

Estimated Cost = 99,191 €

Actual Completion Cost was 26.7% more than the estimate

Actual Completion Cost = 99,191 € x 126.7%

Actual Completion Cost = 125,675 €

Estimation for other expenses = Total Estimated Cost - Estimated Cost of Building Materials - Estimated Cost of Wages

Estimation for other expenses = 99191 € - 64136 € -17410 €

Estimation for other expenses = 17,645 €

Actual Cost for Building materials = Estimated Cost + Increase

Actual Cost for Building materials = 64,136 € X 107.8%

Actual Cost for Building materials = 69,138.61 €

Actual Cost of Wages = Estimated Wages - Decrease

Actual Cost of Wages = 17,410 € X 83.1%

Actual Cost of Wages = 14,467.71 €

Actual Other Expenses = Actual Total Cost of Completion - Actual Cost of Materials - Actual Cost of Wages

Actual Other Expenses = 125,675 € - 69138.61 € - 14,467.71 €

Actual Other Expenses = 42,068.68 €

Percentage Change in Other Expenses = (( Actual Other Expenses - Estimation for other expenses) / Estimation for other expenses) X 100

Percentage Change in Other Expenses = ((42,068.68 € - 17,645 €) / 17,645 €) X 100

Percentage Change in Other Expenses = 138.42%

Percentage Change in Other Expenses = 138.42%