1a. Develop a staffing plan (FTE- Full time equivalent) based on the expected hours to be billed. This means, how many of (Full Time Equivalents) the various staff types should be there to accomplish the set goals and billable hours

b. Develop an Income Statement budget for the company and the two divisions. All overhead costs can be allocated using percentage of revenues.

c. What can the company do to allocate costs differently to the divisions? Prepare a revised Income statement by division.

d. Calculate the break even revenue.

Facts: The Runyon Construction Company does Civil Engineering work and construction work. This company consists of two divisions. The divisions are Water (WA) and Infrastructure (IF). The company sells construction and design projects to various customers. The following are the bill rates for the various staff classifications $300/hour $210/hour S210/hour $160/hour Vice President Senior Engineer Associate Engineer Staff Engineer The two divisions expect to bill the following hours to complete projects water-12,000 hours, vice president at 15% of the time, 20% of Senior Engineer time 10% to Associate engineers and remaining to Staff Engineers Infrastructure-4,000 hours, vice president at 12% of the time, 20% of Senior Engineer time, 5% to Associate engineers and remaining to Staff Engineers The Direct Labor costs per hours are as follows $100/hour $80/hour $62/hour $53/hour Vice President Senior Engineer Associate Engineer Staff Engineer The utilization (billable ratio to total hours) for each staff members are as follows: Vice President Senior Engineer Associate Engineer Staff Engineer 65% | 80% 85% 92% The company has the following other costs Admin Salaries Software $181,000 $20,000 $150,000 $125,000 $16,000 $75,000 CEO Salary Rent Utilities Benefits Also, the company expects to incur the following material costs that are always sold as part of the project with a 10% margin. Infrastructure Division $25000 $10000 $500 Water Division $50000 30000 $1000 Concrete Rebar Other Materials Assume that there are 2080 hours per year that each engineer can work including vacation and other benefit hours Facts: The Runyon Construction Company does Civil Engineering work and construction work. This company consists of two divisions. The divisions are Water (WA) and Infrastructure (IF). The company sells construction and design projects to various customers. The following are the bill rates for the various staff classifications $300/hour $210/hour S210/hour $160/hour Vice President Senior Engineer Associate Engineer Staff Engineer The two divisions expect to bill the following hours to complete projects water-12,000 hours, vice president at 15% of the time, 20% of Senior Engineer time 10% to Associate engineers and remaining to Staff Engineers Infrastructure-4,000 hours, vice president at 12% of the time, 20% of Senior Engineer time, 5% to Associate engineers and remaining to Staff Engineers The Direct Labor costs per hours are as follows $100/hour $80/hour $62/hour $53/hour Vice President Senior Engineer Associate Engineer Staff Engineer The utilization (billable ratio to total hours) for each staff members are as follows: Vice President Senior Engineer Associate Engineer Staff Engineer 65% | 80% 85% 92% The company has the following other costs Admin Salaries Software $181,000 $20,000 $150,000 $125,000 $16,000 $75,000 CEO Salary Rent Utilities Benefits Also, the company expects to incur the following material costs that are always sold as part of the project with a 10% margin. Infrastructure Division $25000 $10000 $500 Water Division $50000 30000 $1000 Concrete Rebar Other Materials Assume that there are 2080 hours per year that each engineer can work including vacation and other benefit hours