problems 1-4

0110 VUIT 7. Find maximum tie spacing for a 2x4,2x6, and 2x8 wale. 8. If a tie spacing of 3' is used what is the load on a typical tie? 9. What size wale is required for use with a tie spacing of 3'? ACCOUNTING Background: At the present time, overhead costs are perceived as insignificant during the estimating phase when pricing new construction projects. The Kiewit management team questions this practice. In light of last year's loss and the expected decrease in sales for the budget period, the management team wants to "tighten up the cost estimating process to make it as accurate as possible. Kiewit does not expect to change the mode of the operation for the next year. However, subcontract costs will decrease and the expected decrease in relationship to revenue is 3%. In addition, salaries will increase for the budget period by $60,000. Other cost increases include $1,500 to contribution, $17,000 to rent, $15,000 to auto and truck insurance, and $3,100 to other fixed cost. Table 1 below shows the previous year's income statement for the company and for each profit center. Suppose three profit centers are identified by Kiewit's management - new work (NW), service (S), and over-counter sales (OCS). Table 1 Previous year's income statement of company and profit center. Company NW OCS S % % $15,000 to auto and truck insurance, and $3,100 to other fixed cost. Table 1 below shows the previous year's income statement for the company and for each profit center Suppose three profit centers are identified by Kiewit's management - new work (NW), service (S), and over-counter sales (OCS). Table 1 Previous year's income statement of company and profit center. Company NW OCS 8.000.000 100.00 6,000,000 100.00 1.840.000 100.00 160.000 100.00 1.200,000 2.880,000 2.720.000 120.000 6.920,000 1,080,000 15.00 36.00 34.00 1.50 86.50 13.50 662,400 1,886,400 2,720,000 120.000 5,388,800 611,200 11.04 31.44 45.33 2.00 89.81 10.19 465,000 993,600 0 0 25.27 72,600 54.00 0 0.000 0.000 45.38 0.00 0.00 0.00 1,458,600 381,400 79.27 20.73 72.600 87,400 45.38 54.63 96,000 72,000 96,000 1.20 0.90 1.20 19.200 14.400 74,758 23.040 17,280 1.007 Account Earnings (revenue) Cost of Construction Labor Material Subcontracts Other Direct Cost (JOH) Total Direct Cost Gross Profit Operating Expense Variable Operating Expense Auto and Truck Communications Insurance (Work-in-progress) Interest (Work-in-progress) Other Variable Expense Total Variable Expense Fixed Operating Expense Contributions Depreciation (Auto and Truck) Depreciation (Building) Insurance Auto and Truck) Interest (Auto and Truck) Rent Salaries Other Fixed Expense Total Fixed Expense Total Operating Expense Net Profit (before tax) Tax (28%) Net Profit (after tax) 0.32 0.24 1.25 1.81 0.30 3.92 53,760 40,320 20.235 67,804 5.520 187.639 14.40 10.80 0.63 9.71 0.30 35.84 15.538 192,000 24,000 480,000 2.40 0.30 6.00 108,658 18,000 235,016 57,345 3,000 43,000 0.11 6.45 0.31 4,000 182 10,320 500 4,800 5,040 2,428 20,000 21,000 30,000 300,000 10,000 431,000 911,000 169.000 47,320 121.680 1,656 8,600 3,000 4,000 4,200 16,978 225.000 7.500 270,934 505,949 105,251 0.04 0.54 0.05 0.25 0.26 0.38 3.75 0.13 5.39 11.39 2.11 0.59 1.52 0.03 0.14 0.05 0.07 0.07 0.28 3.75 0.13 4.52 8.43 1.75 1,163 24,080 500 11,200 11,760 10,594 69.000 2,300 130,597 318,236 63,164 6,000 3.00 3.15 1.52 3.75 0.13 18.42 54.26 0.37 200 29,469 86,814 586 Problems: inrecast the cast structure of the Kiewit company for the budget period, with the actual income 300,000 Salaries Other Fixed Expense Total Fixed Expense Total Operating Expense Net Profit (before tax) Tax (28%) Net Profit (after tax) 10,000 431,000 911,000 169,000 47,320 121.680 3.75 0.13 5.39 11.39 2.11 0.59 1.52 225,000 7,500 270,934 505,949 105,251 3.75 0.13 4.52 8.43 1.75 69,000 2,300 130,597 318,236 63,164 6,000 3.75 2000.13 29,469 18.42 86,814 54.26 586 0.37 Problems: 1. Forecast the cost structure of the Kiewit company for the budget period, with the actual income statement in previous year and the case data above. ( 3 points) 2. Calculate the earning required to generate net profit after tax of $300,528 with the cost structure found in Item #1. (3 points) 3. Complete the column of company budget in Table 2. (4 points) 4. Prepare a budget for each profit center and fill the rest of Table 2. (10 points) Table 2. Budgets of company and profit center. OCS Company NW S 1 % S Account Earnings (revenue) Cost of Construction Labor 0110 VUIT 7. Find maximum tie spacing for a 2x4,2x6, and 2x8 wale. 8. If a tie spacing of 3' is used what is the load on a typical tie? 9. What size wale is required for use with a tie spacing of 3'? ACCOUNTING Background: At the present time, overhead costs are perceived as insignificant during the estimating phase when pricing new construction projects. The Kiewit management team questions this practice. In light of last year's loss and the expected decrease in sales for the budget period, the management team wants to "tighten up the cost estimating process to make it as accurate as possible. Kiewit does not expect to change the mode of the operation for the next year. However, subcontract costs will decrease and the expected decrease in relationship to revenue is 3%. In addition, salaries will increase for the budget period by $60,000. Other cost increases include $1,500 to contribution, $17,000 to rent, $15,000 to auto and truck insurance, and $3,100 to other fixed cost. Table 1 below shows the previous year's income statement for the company and for each profit center. Suppose three profit centers are identified by Kiewit's management - new work (NW), service (S), and over-counter sales (OCS). Table 1 Previous year's income statement of company and profit center. Company NW OCS S % % $15,000 to auto and truck insurance, and $3,100 to other fixed cost. Table 1 below shows the previous year's income statement for the company and for each profit center Suppose three profit centers are identified by Kiewit's management - new work (NW), service (S), and over-counter sales (OCS). Table 1 Previous year's income statement of company and profit center. Company NW OCS 8.000.000 100.00 6,000,000 100.00 1.840.000 100.00 160.000 100.00 1.200,000 2.880,000 2.720.000 120.000 6.920,000 1,080,000 15.00 36.00 34.00 1.50 86.50 13.50 662,400 1,886,400 2,720,000 120.000 5,388,800 611,200 11.04 31.44 45.33 2.00 89.81 10.19 465,000 993,600 0 0 25.27 72,600 54.00 0 0.000 0.000 45.38 0.00 0.00 0.00 1,458,600 381,400 79.27 20.73 72.600 87,400 45.38 54.63 96,000 72,000 96,000 1.20 0.90 1.20 19.200 14.400 74,758 23.040 17,280 1.007 Account Earnings (revenue) Cost of Construction Labor Material Subcontracts Other Direct Cost (JOH) Total Direct Cost Gross Profit Operating Expense Variable Operating Expense Auto and Truck Communications Insurance (Work-in-progress) Interest (Work-in-progress) Other Variable Expense Total Variable Expense Fixed Operating Expense Contributions Depreciation (Auto and Truck) Depreciation (Building) Insurance Auto and Truck) Interest (Auto and Truck) Rent Salaries Other Fixed Expense Total Fixed Expense Total Operating Expense Net Profit (before tax) Tax (28%) Net Profit (after tax) 0.32 0.24 1.25 1.81 0.30 3.92 53,760 40,320 20.235 67,804 5.520 187.639 14.40 10.80 0.63 9.71 0.30 35.84 15.538 192,000 24,000 480,000 2.40 0.30 6.00 108,658 18,000 235,016 57,345 3,000 43,000 0.11 6.45 0.31 4,000 182 10,320 500 4,800 5,040 2,428 20,000 21,000 30,000 300,000 10,000 431,000 911,000 169.000 47,320 121.680 1,656 8,600 3,000 4,000 4,200 16,978 225.000 7.500 270,934 505,949 105,251 0.04 0.54 0.05 0.25 0.26 0.38 3.75 0.13 5.39 11.39 2.11 0.59 1.52 0.03 0.14 0.05 0.07 0.07 0.28 3.75 0.13 4.52 8.43 1.75 1,163 24,080 500 11,200 11,760 10,594 69.000 2,300 130,597 318,236 63,164 6,000 3.00 3.15 1.52 3.75 0.13 18.42 54.26 0.37 200 29,469 86,814 586 Problems: inrecast the cast structure of the Kiewit company for the budget period, with the actual income 300,000 Salaries Other Fixed Expense Total Fixed Expense Total Operating Expense Net Profit (before tax) Tax (28%) Net Profit (after tax) 10,000 431,000 911,000 169,000 47,320 121.680 3.75 0.13 5.39 11.39 2.11 0.59 1.52 225,000 7,500 270,934 505,949 105,251 3.75 0.13 4.52 8.43 1.75 69,000 2,300 130,597 318,236 63,164 6,000 3.75 2000.13 29,469 18.42 86,814 54.26 586 0.37 Problems: 1. Forecast the cost structure of the Kiewit company for the budget period, with the actual income statement in previous year and the case data above. ( 3 points) 2. Calculate the earning required to generate net profit after tax of $300,528 with the cost structure found in Item #1. (3 points) 3. Complete the column of company budget in Table 2. (4 points) 4. Prepare a budget for each profit center and fill the rest of Table 2. (10 points) Table 2. Budgets of company and profit center. OCS Company NW S 1 % S Account Earnings (revenue) Cost of Construction Labor