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Problem Statement: Your construction company worked on the projects shown in the table below during the last year. The duration shown in the table represents
- Problem Statement: Your construction company worked on the projects shown in the table below during the last year. The duration shown in the table represents the number of months during the year that the project was under construction. Analyze the different profit centers based on their gross profit margins, their return on cash invested in the projects, and their use of managements time. One project manager can oversee three subdivisions or one road construction project.
Profit Center | Revenue ($) | Gross Profit ($) | Average Monthly Investment ($) | Duration Months |
Subdivision | 400,000 | 73,334 | 81,333 | 6 |
Subdivision | 305,000 | 46,954 | 73,000 | 5 |
Subdivision | 147,000 | 17,079 | 42,250 | 4 |
Road | 1,023,000 | 137,968 | 130,375 | 8 |
Road | 1,264,800 | 112,660 | 150,480 | 10 |
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