Question
Recalculate the cost of the MOH RFP and the expected revenue based on ABC and an expected 30% markup for profit. MOH requires the design
Recalculate the cost of the MOH RFP and the expected revenue based on ABC and an expected 30% markup for profit.
MOH requires the design and delivery of a customized Heavy Duty mechanics couse.
Each response to our RFP is to include:
- A fixed price for the design and delivery of the customized course.
- An expected timeline for production
VI Technical College Proposal
- Calculation of Fixed Price (Based on 15 students and a 5-week course)
| Instructors | $ 7,400 |
| Qualified Mechanics | 8,900 |
| Student Tools | 10,100 |
| Standard Overhead Burden | 28,350 |
| Total Cost | $ 54,750 |
|
Profit Margin |
16,425 |
| Fixed Price Quote | $ 71,175 |
- Timeline for Delivery
Course development- 3 Weeks from the signing of Contract
Course delivery- 5 Weeks
Calculation of Standard Design Labour and Overhead Burden
| Projected Overhead Costs Full Year |
| |
| Electricity-classroom |
| $ 15,000 |
| Supplies- Shop |
| 3,000 |
| Rent-Facility |
| 95,000 |
| Amortization- Instructional vehicles |
| 62,500 |
| Amortization- Equipment & Tools |
| 13,000 |
| Supervisors- |
| 85,000 |
| Property taxes |
| 10,000 |
| Total Overhead costs | A | $ 283,500 |
| Expected # of courses full year | B | 10
|
Standard Overhead Burden to be applied to 28,350
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Comprehensive Assurance & Systems Tool
Authors: Laura R. Ingraham, Greg Jenkins
4th Edition
0134790472, 9780134790473
