Question

Mike purchased a dog and needs to fence in the backyard. The perimeter of the yard is 340 feet. ABC fencing has quoted a price of $10.50/foot plus $35 each for two gates. Mike can purchase the materials for $1,400 delivered and hire a helper for $6/hour. He believes that it will take both he and the helper 30 hours to install the fence. A power pothole digger can be rented for $30/day. He is also considering whether to install and electronic underground fence, which was quoted as $2,780, complete with controls and sensors installed. Analyze each option and determine the best economic choice (Mike is on a budget). Show all work

Answer 1

Solution:-

Mike has two choices available for fencing. Calculating the cost incurred in case of each choice:

Perimeter of the yard = 340 feet

(a)    Normal Fencing :

Cost of material = $ 1400; Cost of hiring a helper = $6 / hour; Number of hours = 30 hours

Cost of power pothole digger = $30 /day, so it should be rented for 2 days

Assuming that Mike's cost of labor (i...e., opportunity cost) is not considered.

Total cost = (30 * $6) + ($1400) + (2 * $30) => $1640

(b)   Electronic underground fencing

Given that the total cost of installing electronic underground sensor is $2780

So, option (a) installing normal fencing across the perimeter of the yard is more economical.