The Comcast Construction Company does Civil Engineering work and manufacturing. This company consists of two divisions. The divisions are Civil Engineering (CE) and Manufacturing (MF). The company sells construction and design projects to various customers. The following are the bill rates for the various staff classifications in the Civil Engineering Division:

Vice President $300/hour Senior Engineer $210/hour Associate Engineer $200/hour Staff Engineer $163/hour The CE division expect to bill the following hours to complete projects that they have procured: . Civil Engineering- 13,000 hours, vice president at 10% of the time, 30% of Senior Engineer time 10% to Associate engineers and remaining to Staff Engineers. The Direct Labor costs per hours are as follows: Vice President $100/hour Senior Engineer $90/hour Associate Engineer $62/hour Staff Engineer $53/hour. The utilization (billable ratio to total hours=billable hours/total hours) for each staff members are as follows: Vice President 65% Senior Engineer 80% Associate Engineer 85% Staff Engineer 92%. It can be assumed that each full-time equivalent staff member can work 2080 hours (40hours a week times 52 weeks). Also, the Manufacturing Division (MF) expects to incur the following material costs that are always sold as parts of the project with a 10% gross margin. Manufacturing Division Concrete $60,000 Rebar $30,000 Other Materials $10,000 The company has the following other overhead costs: Admin Salaries $181,000 Software $20,000 CEO Salary $160,000 Rent $111,000 Utilities $16,000 Benefits $75,000 Group Assignment: You are an outside consulting firm. The company Board and the CFO have engaged you. The goal of the Board and the CFO is to improve profitability of the divisions and company. Therefore, to accomplish that the following questions should be answered during in the report and presentation. (1). Develop a staffing plan (FTE- Full time equivalent) based on the expected hours to be billed for the Civil Engineering Division. This means, how many of (Full Time Equivalents) the various staff types should be there to accomplish the set goals and billable hours. (20% Of points) (2). Develop an Income Statement budget for the company and the two divisions. All overhead costs can be allocated using percentage of revenues. (25% of Points) (3). What can the company do to allocate costs differently to the divisions? Prepare a revised Income statement by division. (4). Calculate the breakeven revenue for the company. (5). Make recommendations to improve profitability. Prepare a revised income statement with divisions to show the improved profitability at the same revenue levels