QUESTION/SECTION 2 Project Scope [33 MARKS]

2.1 The owners of Global Green Books Publishing understand the importance of the project management life cycle and subsequently set up a project scope. They have asked you to assist them with a cost-benefit analysis to analyse the viability of their project.

First, they ask you to calculate the total production cost as well as the total profit of each unit sold. Use the information provided to calculate the following:

• The total cost for each task completed.
• The total cost of internal labour.
• The total cost of other expenses.
• The total cost of production.
• The total profit if a 30% profit margin is applied. Use the following equation:

Total Cost of Production x 30% = Profit per unit sold.

• The selling price per unit
• The total cost to the client if 100 units were sold.

Use the spreadsheet provided to complete this task.

Internal Labour Costs
Task	Staff	Rate per Hour(including Overhead Rate of 1.5)	Estimate hours per task
Receive Order	Customer Service Representation	R20.00	1
Check order	Customer Service Representation	R20.00	1
Verify Order	Customer Service Representation	R20.00	1
Plan Work	Supervisor	R47.00	1
Assign Work	Supervisor	R47.00	1
Estimation	Supervisor	R47.00	2
Reserve Equipment	Supervisor	R47.00	1
Acquire Permissions	Publishers Liaison	R38.50	1
Desktop Publishing	DTP Specialist	R45.60	15
Content Conversion	DTP Specialist	R45.60	20
Produce eBook	DTP Specialist	R45.60	25
Quality Checks	Quality Technician	R36	4
Track Production	Supervisor	R45.00	3

Other Costs
Description	Cost
Material Costs of permissions	R1 500.00
Equipment Costs	R2 000.00
Subcontractor Labour	R500.00
Computer Support	R500.00
Network Infrastructure	R1 650.00

Income
Description	Cost
Once off licensing fee paid by customer	R1 500.00
Once off administration fee	R500.00

PLEASE MAKE THESE TABLES AVAILABLE FOR STUDENTS TO USE

Internal Labour Costs
Task	Staff	Rate per hour (including Overhead Rate of 1.5)	Estimated hours per task	Total Cost for each task
Total Cost of Internal Labour

Other Costs
Description	Costs
Total Other Costs

Total Cost of Production
Total profit per unit if 30% profit margin applies
Selling Price per unit

Income
Description	Costs
Once off licensing fee paid by customer	R 1 500
Total of 100 units sold
Once off administration fee	R500
Total Income