UNIVERISTY OF CALIFORNIA DAVIS ARE 119 FALL 2019 GROUP CASE ASSIGNMENT PART I Instructions: Please form groups of 7 people (4 minimum} for this assignment. The groups can be selected randomly. It is the student's resnsibility to nd a group. Each group needs to complete the assignment below. Additionally, each group is reguired to include a page with each member's contribution to the assignment. If a group member has no contributions, that student will get zero for the assignment. The objective of a group assignment is to get accustomed to working in teams. Each group is responsible for preparing a PowerPoint and to the prescribed audience in the below assignment and a formal report to answer the questions. Grade is 70% to the written report and 30% to PowerPoint Report. This case is a real-life example of a problem in a business and specic instructions are not provided. Use the ve steps in decision making we learned and the other concepts in solving this case. In addition, Five Dysfunctions of a Team book can be utilized when issues arise in the team to remedy them. Facts: 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: SSOO/hour Sam/hour SZOO/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 $90/hour $62/hour Staff Engineer I SSS/hour. I The utilization {billable ratio to total hours=bi|lable hours/total hours} for each staff members are as follows: Vice President nssoninieinnineni siaiiinnineei 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 (MP) expects to incur the following material costs that are always sold as parts of the project with a 10% gross margin. Manufacturing ninisinn The company has the following other overhead costs: $131,000 320.000 CEO Salary $160,000 $16 000 573000 W You are an outside consulting rm. 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 stafng 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 protability. Prepare a revised income statement with divisions to show the improved protability at the same revenue levels. Terminolggy Used in Assignment Some of the terms that are used in this assignment is not in the textbook. The terms will be covered in class on a single day. so please attend class that day. If you have the opportunity. you can Google the terms as these are industry standard terminology. Assignment Related Questions Assignment related questions needs to be limited to concepts. Reviewing formulas for accuracy is not something that can be done ahead of the submission
