Given the information provided here about ECCs annual revenue and overhead expenses, how do they compare with
Question:
Given the information provided here about ECC’s annual revenue and overhead expenses,
how do they compare with the breakeven analysis of the contractor in Table 6.1?
Transcribed Image Text:
Table 6.1 Breakeven analysis Breakeven Revenue Without Profit Ideal Revenue Construction Stepped Cost Fixed OH $50,000 $50,000 $0 $50,000 $156,000 $152,000 $100,000 $50,000 2.0% $630,000 $610,000 $500,000 $100,000 2.0% $1,160,000 $1,120,000 $1,000,000 $100,000 2.0% $2,220,000 $2,140,000 $10,850,000 $10,450,000 $10,000,000 $2,000,000 $100,000 2.0% $250,000 2.0% $53,650,000 $51,650,000 $50,000,000 $650,000 2.0% $107,000,000 $103,000,000 $100,000,000 $1,000,000 2.0% $532,000,000 $512,000,000 $500,000,000 $2,000,000 2.0% $1,063,000,000 $1,023,000,000 $1,000,000,000 $3,000,000 2.0% Variable Variable OH % 2.0% HOOH Total HOOH % of Cost $0 $2,000 $10,000 Total HOOH $50,000 $52,000 52.0% $110,000 22.0% $120,000 12.0% $140,000 7.0% $20,000 $40,000 $200,000 $450,000 4.5% $1,000,000 $1,650,000 3.3% $2,000,000 $3,000,000 3.0% $10,000,000 $12,000,000 2.4% $20,000,000 $23,000,000 2.3% Ideal Fee, or Profit as % of Cost OH&P 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 56.0% 26.0% 16.0% 11.0% 8.5% 7.3% 7.0% 6.4% 6.3% Ideal Net (Before Tax) Profit $0 $4,000 $20,000 $40,000 $80,000 $400,000 $2,000,000 $4,000,000 $20,000,000 $40,000,000
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 100% (1 review)
ECCs revenue is anticipated to be 100m 2mil HOOH 2 profit 3 therefore 5 fee Table 61 100m is 2 varia...View the full answer
Answered By
Sandhya Sharma
I hold M.Sc and M.Phil degrees in mathematics from CCS University, India and also have a MS degree in information management from Asian institute of technology, Bangkok, Thailand. I have worked at a international school in Bangkok as a IT teacher. Presently, I am working from home as a online Math/Statistics tutor. I have more than 10 years of online tutoring experience. My students have always excelled in their studies.
4.90+
119+ Reviews
214+ Question Solved
Related Book For
Cost Accounting And Financial Management For Construction Project Managers
ISBN: 9781138550650
1st Edition
Authors: Len Holm
Question Posted:
Students also viewed these Business questions
-
In Exercises 1 through 38, differentiate the given function. L(x) = In x + 2x - 3 x + 2x + 1
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
You have been hired as an IT consultant by an entrepreneur starting a small advertising company called MilleniAds. As a start-up, your clients company is relatively small and has a limited budget....
-
An important part of the customer service responsibilities of a cable company relates to the speed with which trouble in service can be repaired. Historically, the data show that the likelihood is...
-
Determine the rate of change HA of the angular momentum HA of the plate of Prob. 18.2, knowing that it has an angular velocity = j and an angular acceleration = j. 102
-
What is the probability that a randomly selected student is a junior or an arts major? Use the table provided here, which breaks down the enrollment at a certain liberal arts college by class year...
-
What organizational enablers will best assist in creating a climate for change in a company?
-
The management of Zigby Manufacturing prepared the following estimated balance sheet for March 2017: To prepare a master budget for April, May, and June of 2017, management gathers the following...
-
O Question 3 Put a pin in it Find the value of a that makes f continuous everywhere. ax - 8 x
-
Why do PMs, PEs, superintendents, and jobsite cost accountants need to bother studying financial statements and financial ratios which are generated by the home office accounting department and the...
-
Resolve the following breakeven questions using Table 6.1 There are an unlimited amount of questions and exercises that can be based on this table and analysis: Table 6.1 a. What is the breakeven...
-
Find Your Way Back, Inc., reported the following financial statements for the last two years. Construct the cash flow identity for the company. Explain what each number means. 2008 Income Statement...
-
You are asked to calculate the NPV of a vineyard project by constructing a proper DCF model. The current price of the relevant grapes is $ 1 , 5 0 0 / tn . Historically, grape prices have grown on...
-
Michelle Laframboise sits on the Board of Directors for a Qubec organization and receives a quarterly director's fee of $9,300.00. Michelle's TD1 and TP1015.3V codes are 1 and A. Michelle is not an...
-
Three (3) pounds of direct materials is needed to produce one unit. Irrigation likes to keep 5% of the materials needed for the next month's production in its ending inventory. Raw materials on hand...
-
Conduct a risk assessment and analysis of a small e-commerce business. Include what service or product the business sells over the internet. Use the following files below: - facilities diagram -...
-
For each of the following, graph the impulse response function, showing the first 20 dynamic multipliers (ideally, insert the images in your Word or LATEX file, or you can upload the images...
-
Which type of product development effort would be better suited to concurrent engineering: a radically new product involving cutting-edge technologies or the latest version of an existing product?...
-
How does health insurance risk differ from other types of insurance risk (e.g., automobile or homeowners insurance)? What is the difference between cost sharing and cost shifting? Is retiree health...
-
What is one of the best sources of information for pricing and productivity factors?
-
What customarily happens to labor burden rates journal-entered to a jobsite after employees top $133,000 in wages paid in one calendar year? Is this ethical? How does this affect project profits? How...
-
Which craft in Table 10.2 has the highest: (A) Bare wage rate. (B) Total labor burden. (C) Percentage markup for labor burden, and/or (D) loaded wage rate? Table 10.2 Construction Craft Carpenters...
-
Record each of the above transaction in general journal form
-
Nittany Company uses a periodic inventory system. At the end of the annual accounting period, December 3 1 of the current year, the accounting records provided the following information for product 1...
-
What does the Type 2 Statement on Standards for Attestation Engagements 1 6 ( SSAE 1 6 ) evaluate? It reports on the issues faced by an organization integrating with cloud - computing environment. It...
Study smarter with the SolutionInn App