Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the Profit Equation - Exercise 1 Continued ... Page 2 Your Company is about to win another contract worth $422,000 and bid at 14.0%.

image text in transcribed
Using the Profit Equation - Exercise 1 Continued ... Page 2 Your Company is about to win another contract worth $422,000 and bid at 14.0%. If you win the contract you can perform with your existin team. Let's look at that: You won the contract and added \$422K in Revenue at 14\% GPC. How much New GPC, "Marginal GPC" will this contract add? Contract$GPC%=MarginalGPC Your new Total GPC will be? Marginal GPC + Previous GPC\$ = New GPC\$ How much Profit will Your Company earn with the new contract? New GPCS - OH = New Profit What ROE will Your Company earn with the new contract? New Profit / OE\$ What Profit Margin will Your Company earn with the new contract? New Profit / New Revenue How much is your Bonus if you get 25% earnings over 10% ROE New Profit -NPS =P over 10% ROE .25= Bonus

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Stocks Bonds And The Investment Horizon

Authors: Haim Levy

1st Edition

9811250146, 978-9811250149

More Books

Students also viewed these Finance questions

Question

=+13.4. 1 Relate the result in Problem 13.3 to Theorem 5.1(ii).

Answered: 1 week ago