Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Alternative Energy PLUS Management team is considering offering a special on hybrid solar system to residents of a new housing development in Oceanpointe, Hanover. The

Alternative Energy PLUS Management team is considering offering a special on hybrid solar system to residents of a new housing development in Oceanpointe, Hanover. The team has received market research confirming that a significant amount of residents are interested to going solar. The homes are of the same size and therefore the anticipated costs for each system are the same. The associate costs are listed below: . Solar system (Solar Panels, Inverters, Batteries, Cables) is $1,550,000 " W B B The yearly maintenance cost for each system at $50,000 per year for the next 3year. Transportation of equipment and personnel for period at $5,500,000 Inspection and Commissioning of each system is $35,000. Rental of storage units and customer service area for the period will cost $300,000 per month. Advertisement is slated the cost $233,000 Two customer service representatives/ administrative assistances that work one 8- hour stiff per day and are paid $800 per hour Twenty (20) technicians will be engaged to work 8 hour work days and will be paid $800 per hour to be on site and additional $1500 per hour when actively engaged in the installation of a system. It takes five (5) technician 7 hours to complete the installation each solar system. It is estimated that the cost for utilities will total $432,000 annually. Other miscellaneous costs including tools, uniforms and so on are estimated at $325,000 per annum. The period earmarked for the project is March 1 to December 31, 2022. Allowing 244 days of work, excluding Sundays and public holidays. The following is required by the management team: a) Determine the total fixed and variable costs for this venture. [5 marks] b) Evaluate the contribution per client if each is to be charged a $2,200.000. [4 marks] c) Calculate the break-even point. [3marks] d) Interpret the break-even point. [3marks] e) Calculate the percentage margin of safety if 330 installations are expected [2 marks] 1) Interpret the percentage margin of safety. [2 marks Calculate the unit cost if there are en customer madd BB Two customer service representatives/ administrative assistances that work or hour stiff per day and are paid $800 per hour. Twenty (20) technicians will be engaged to work 8 hour work days and will be $800 per hour to be on site and additional $1500 per hour when actively engag the installation of a system. It takes five (5) technician 7 hours to complete the installation each solar syster It is estimated that the cost for utilities will total $432,000 annually. Other miscellaneous costs including tools, uniforms and so on are estimated at $325,000 per annum. The period earmarked for the project is March 1 to December 31, 2022. Allowing 244 work, excluding Sundays and public holidays. The following is required by the management team: a) Determine the total fixed and variable costs for this venture. [5 marks] b) Evaluate the contribution per client if each is to be charged a $2,200,000. [4 marks c) Calculate the break-even point. [3marks] d) Interpret the break-even point. [3marks] Calculate the percentage margin of safety if 830 installations are expected. [2 mark f) Interpret the percentage margin of safety. [2 marks] g) Calculate the unit cost if there are 660 customers. [2 mark] h). Determine the unit cost if there are 1000 customers. [2 mark] Explain why the unit costs for parts (g) and (h) are different [2marks] [Total 25 marks]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Becoming An Unstoppable Woman In Finance 29 Strategic Financial Experts

Authors: Hanna Olivas, Adriana Luna Carlos, Heather Stokes, Lisa Chastain, Jennifer Lara, Shannon Lavenia, Althia Lopez, Heather Jackson, Annette Morris, Rebecca Chandler

1st Edition

979-8986936703

More Books

Students also viewed these Accounting questions

Question

Choosing Your Topic Researching the Topic

Answered: 1 week ago

Question

The Power of Public Speaking Clarifying the

Answered: 1 week ago