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PLEASE SHOW ALL THE STEPS ON THE PAPER, AND SHOW THE leave an audit traiL. THANK YOU Shaw Landscapes (SL) develops and sells plans for
PLEASE SHOW ALL THE STEPS ON THE PAPER, AND SHOW THE leave an audit traiL. THANK YOU
Shaw Landscapes (SL) develops and sells plans for various types of gardens and outdoor spaces. Customers use the plans to install various landscape features such as gardens, ponds, walls, etc. The operating budget for 2023 called for 3,000 units to be produced and sold. As of July of FY2023 SL is on track to produce and sell 3,100 plans. Unexpectedly, Bryant Holdings - a developer of single family homes - has requested SL provide 300 plans for one of its building projects to be delivered in November. SL believes it could produce a maximum of 3,300 plans during FY2023 given its current staffing. SL's personnel manager, Kevin, stated it would be unlikely SL could hire and train additional staff within the timeframe available to deliver the Bryant plans on time. SL's cost estimator, Jared, has reviewed Bryant's specification and noted that neither SL's variable costs per unit or total fixed costs would be affected by the order as long as SL stayed within its normal production capabilities. However, Jared estimates that a $60,000 independent survey of Bryant's project site would be required to verify the specifications. Bryant has offered SL a price of $1,600 per plan due to the order size. Provide a financial analysis of Bryant's proposal. Also include a target price per plan that based upon adding a 20% mark up to all relevant costsStep by Step Solution
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