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?

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

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. ANSWER BEFORE $2$pm please