Are there any qualitative or non – financial factors that the firm should consider in the decision making process? : Jax Construction Company plans to

Are there any qualitative or non – financial factors that the firm should consider in the decision making process? : Jax Construction Company plans to erect a new building. It will use part of the space for its own offices
and lease the balance of the space to tenants. The company has two alternatives: (1) do its own
construction work or (2) use an independent contractor.
Cost estimates have been prepared showing the costs of operation for the coming year during which
the new building will be constructed. The costs of constructing the building, if done by Jax, are included
in that set of estimates.
If the company does its own construction work, it will not be able to handle outside construction
contracts that would contribute $500,000 to net income. The costs attributable to these outside
contracts are excluded from the estimated costs of operation shown below.
Estimated Costs to
Estimated Costs to
Operate –
Constuction by
Independent
Operate (including
Construction) –
Construction by Jax
Contractors
(self)
$6,000,000
3,000,000
315,000
650,000
50,000
47,000
106,000
91,000
60,000
40,000
10,000
50,000
10,000
$7,000,000
4,800,000
400,000
780,000
55,000
47,000
106,000
91,000
60,000
43,000
10,000
50,000
10,000
Materials
Labour
Indirect materials and supplies
Supervision
Taxes and insurance
Heat and light
Maintenance and repairs
Truck and equipment operation
Depreciation
Travel
Telephone
Other utilities
Miscellaneous
The independent company has bid $4,000,000 for the job.