The Jess Gilmore Company specialized in the purchase renovation and resale of older homes. Jess employs several carpenters and painters to do the work for him. It is essential for im to have accurate cost estimates so he can determine total renovation costs before he purchases a piece of property. If estimated renovation costs plus the purchase price of a house are higher than its estimated resale value the house is not a worthwhile investment.Jess has been using the home s interior square feet for his exterior paint cost estimations. Recently he decided to include the number of openings- the total number of doors and windows in a house as a cost driver. Their cost is significant because they require time-consuming preparatory work and careful brushwork. The rest of the house usually is painted either by rollers or spray guns which are relatively efficient ways to apply paint to a large area. Jess has kept careful records of these expenses on his last 12 jobs:House Square Feet Openings Cost1 2600 13 $33352 3010 15 $37423 2800 12 $31004 2850 12 $3.1505 4600 19 $47006 2700 13 $32257 2375 11 $29208 2450 11 $28369 2600 10 $294510 3700 16 $411211 2650 13 $321012 3550 16 $39651. Using the high-low cost estimation technique determine the cost of painting a 3300 square foot house with 14 openings. Also determine the cost for a 2400 square foot house with 8 openings.2. Plot the cost data against square feet and against openings. Which variable is a better cost driver? Why?3. What are the sustainability issues for this company and what is the role of cost estimation in this regards?
