General Contractor

Average Project Size: $$300,000$

Gross Margin: $15\%$

Owner's Equity: $$500,000$

Profit Goal: $25\%$ ROE

Annual OH: $$450,000$

How many projects must the company complete to breakeven?

$450,000\%300,000$

How many projects must the company complete to hit Profit Goal?

$500,000\mathrm{.}25=125,000+450,000=575,000$

$575,000\%300,000$

How much Pretax Profit would the company earn if you were to complete $20$ projects this year?

Your bonus program reads that you get $20\%$ of the profit after paying the Owner's their ROE target profit. If you completed $20$ projects, how much bonus would you earn?

The Owners want to earn $15\%$ ROE AND earn the same amount as retained earnings. Your bonus program says you get $33\%$ of earnings after paying Owners their ROE AND having the same amount as retained earnings. How much is your bonus if you complete $20$ projects.

NEED HELP!!!

PLEASE COMPLETE BEFORE $1$pm TODAY.