A contractor reviews a budget showing $288,000 in annual payroll and calculates it to $11.54 per hour, calling it wildly too low. He argues payroll should be $561,000 to $752,000 at $22 per hour, and flags food, electricity, and insurance as drastically underestimated.
The current P&L shows that there's $478,000 spent on annual expenses with $288,000 of those being made up of payroll. I can tell you right now, that's 100% too low because it says that your payroll works out to only be about $11.54 an hour. And so, and then what it's going to cost you for some of the other things.
Okay. So did it take— was— I don't, I don't even know if in this—
It's saying that it pulled it from a P&L. Okay. So right there, it says that the $336,000 to— gotcha— labor hours worked per week needs to be up around the $22 an hour mark. Not, not so, right? So a realistic all-in standard residential home is more like $752,000 a year, which they were at— they were at how much? So we're thinking that just labor is $561,000. They're saying with the mortgage, the, the payroll, the electric, the the food, the insurance. Food at $24,000 a year.
What?
Do you see that?
Yeah, that's not—
electric's at $7,200, insurance at $90,000. Like, none of those numbers are even close for that to me, and I live in it. I live in an RV.
So going through it, going back down, you can see that this, this budget they have is completely not realistic, realistic at all.
