what is the calculations ?

what are the step by step calculations and it is based on a comparion between the two firms

The following is a summary of key data of this hypothetical firm, Firm A (Nassau Heavy Equipment Operator) based on its financials as at December, 2019: January to December, 2019 (s) 10 No. of employees in 2019 Revenues: $4,223,419 ($500,000) ($375,616) Fixed Cost: Fixed Maintenance contracts for repairs of equipment: Annual Payments on a fixed interest rate loan: Annual payments for a fixed leased (expires 2025) for use of building to house equipment: Annual payments for fixed leased for office space (expires 2022) ($500,000) ($500,00) $275,000 $50,000 Variable Cost: Salaries for 2019: Utilities: Electricity, Water and Communications Services: Operating Profit for 2019: $2,022,803 Factors to note, inter alia for Nassau Heavy Equipment Operator i. You are told for the first quarter, 2020, i.e. period January 1 to March 31, 2020, the revenues as a result of the coronavirus (COVID-19), is $450,000. ii. The projected fixed cost for 2020, is the same as what the company would have had in 2019. Further, the fixed cost is to be allocated on a quarterly basis, in other words, you must apportion, 25% of the annual fixed cost to derive the quarterly allocation. ill. For the first quarter of 2020, you have committed to keeping staff count, but there is no commitment beyond the first quarter. iv. Salaries and utilities are variable costs, i.e. discretionary. V. The variable costs inclusive of utilities are the same in 2020 as that of 2019. January to December, 2019 ($) 120 $2,787,654 No. of employees in 2019 Revenues: ($100,000) ($175,616) Fixed Cost: Fixed Maintenance contracts for repairs of equipment: Annual Payments on a fixed interest rate loan: Annual payments for a fixed leased (expires 2025) for use of building to house equipment: Annual payments for fixed leased for office space (expires 2022) ($100,000) ($50,00) $1,318,954 $50,000 Variable Cost: Salaries for 2019: Utilities: Electricity, Water and Communications Services: Operating Profit for 2019: $2,022,803 Performance for the First Quarter, 2020 for Plant Heaven i. You are told for the first quarter, i.e. period January 1 to March 31, 2020, revenues for Plant Heaven, is $510,000 as a result of the coronavirus. ii. Fixed cost in 2020 is the same as that of 2019 and as such this expense is expected to be 25% of the annual total for the first quarter. iii. You have committed to keep staff count the same for the first quarter, 2020, but there is no commitment to staff beyond the first quarter, 2020. iv. Salaries and utility costs are all variable. V. You are to assume that all variable costs, inclusive of utilities are the same in 2020 as that of 2019. Case Study - March 27 - Word MAILINGS REVIEW VIEW TABLE TOOLS DESIGN LAYOUT E 21 AaBbccDd AaBbCcDd AaBC AaBbcc AaB AaBCD AaBbCcDd AaBbc 1 Normal 1 No Spac.. Heading 1 Heading 2 Title Subtitle Subtle Em... Empha Styles Paragraph The following is a summary of key data of this hypothetical firm, Firm A (Nassau Heavy Equipment Operator) based on its financials as at December, 2019: January to December, 2019 10 No. of employees in 2019 Revenues: $4,223,419 ($500,000) ($375,616) Fixed Cost: Fixed Maintenance contracts for repairs of equipment: Annual Payments on a fixed interest rate loan: Annual payments for a fixed leased (expires 2025) for use of building to house equipment: Annual payments for fixed leased for office space (expires 2022) ($500,000) ($500,00) Variable Cost: Salaries for 2019: Utilities: Electricity, Water and Communications $275,000 $50,000 Service $2,022,803 Operating Profit for 2019: Factors to note, inter alia for Nassau Heavy Equipment Operator i. You are told for the first quarter, 2020, i.e. period January 1 to March 31, 2020, the revenues as a result of the coronavirus (COVID-19), is $450,000. 1. The projected fixed cost for 2020, is the same as what the company would have had in 2019, Further, the fixed cost is to be allocated on a quarterly basis, in other words, you must apportion, 25% of the annual fixed cost to derive the quarterly allocation. iii. For the first quarter of 2020, you have committed to keeping staff count, but there is no commitment beyond the first quarter. iv. Salaries and utilities are variable costs, i.e. discretionary. . The variable costs inclusive of utilities are the same in 2020 as that of 2019. t(2) - Case Study - March 27 - Word TABLE TOOLS CES MAILINGS REVIEW VIEW DESIGN LAYOUT S. . . E L cDd AaBbc d Ac ES E T Normal 1 No Spac. Heading 1 Heading 2 Title Subtitle Subtle Em. E Styles Paragraph CUSTIS, PICK UP Srpens irom the LOCKS anu urup IF unveries to the Terms Customers. The following is a summary of key data of this hypothetical firm, Firm A (Nassau Heavy Equipment Operator) based on its financials as at December, 2019: January to December, 2019 ($) 120 $2,787,654 No. of employees in 2019 Revenues: ($100,000) ($175,616) Fixed Cost: Fixed Maintenance contracts for repairs of equipment: Annual Payments on a fixed interest rate loan: Annual payments for a fixed leased (expires 2025) for use of building to house equipment: Annual payments for fixed leased for office space (expires 2022) ($100,000) ($50,00) Variable Cost: Salaries for 2019: Utilities: Electricity, Water and Communications Services: Operating Profit for 2019 - $1,318,954 $50,000 $2,022,803 Performance for the First Quarter, 2020 for Plant Heaven i. You are told for the first quarter, i.e. period January 1 to March 31, 2020, revenues for Plant Heaven, is $510,000 as a result of the coronavirus. Fixed cost in 2020 is the same as that of 2019 and as such this expense is expected to be 25% of the annual total for the first quarter. ii. You have committed to keep staff count the same for the first quarter, 2020, but there is no commitment to staff beyond the first quarter, 2020. iv. Salaries and utility costs are all variable, V. You are to assume that all variable costs, inclusive of utilities are the same in 2020 as that of 2019. You are asked to answer the following questions as part of your analysis: Which of the two (2) firms is likely to be in a better position to respond to the threat of COVID- 192 Hint: Your response should take into account the cost structure of the two firms, i.e. the firm's variable versus fixed cost. il. Apart from the response to COVID-19, which firm is likely to be better placed to do well during an expanding economy? Discuss and give reasons to support your answer. ill. Assuming that a turnaround in business as a result of COVID-19 is not expected to take place until the second quarter 2021, what measures would you take as the owner of Firm A? As the owner of Firm B? iv. What steps, if any, will you take as (a) owner of firm A; (b) owner of Firm B to make your business more resilient, i.e. revenue protection, if possible in the future? V. If you were a policymaker, which firm will you provide greater support? Again, provide the reasons to support your answer. vi. As a policymaker, what support will you provide to Firm A? What support will you provide to Firm B? Provide reason for the support provided to these firms." vil. What are your recommendations to the Government of The Bahamas based on the scenarios listed above? The following is a summary of key data of this hypothetical firm, Firm A (Nassau Heavy Equipment Operator) based on its financials as at December, 2019: January to December, 2019 (s) 10 No. of employees in 2019 Revenues: $4,223,419 ($500,000) ($375,616) Fixed Cost: Fixed Maintenance contracts for repairs of equipment: Annual Payments on a fixed interest rate loan: Annual payments for a fixed leased (expires 2025) for use of building to house equipment: Annual payments for fixed leased for office space (expires 2022) ($500,000) ($500,00) $275,000 $50,000 Variable Cost: Salaries for 2019: Utilities: Electricity, Water and Communications Services: Operating Profit for 2019: $2,022,803 Factors to note, inter alia for Nassau Heavy Equipment Operator i. You are told for the first quarter, 2020, i.e. period January 1 to March 31, 2020, the revenues as a result of the coronavirus (COVID-19), is $450,000. ii. The projected fixed cost for 2020, is the same as what the company would have had in 2019. Further, the fixed cost is to be allocated on a quarterly basis, in other words, you must apportion, 25% of the annual fixed cost to derive the quarterly allocation. ill. For the first quarter of 2020, you have committed to keeping staff count, but there is no commitment beyond the first quarter. iv. Salaries and utilities are variable costs, i.e. discretionary. V. The variable costs inclusive of utilities are the same in 2020 as that of 2019. January to December, 2019 ($) 120 $2,787,654 No. of employees in 2019 Revenues: ($100,000) ($175,616) Fixed Cost: Fixed Maintenance contracts for repairs of equipment: Annual Payments on a fixed interest rate loan: Annual payments for a fixed leased (expires 2025) for use of building to house equipment: Annual payments for fixed leased for office space (expires 2022) ($100,000) ($50,00) $1,318,954 $50,000 Variable Cost: Salaries for 2019: Utilities: Electricity, Water and Communications Services: Operating Profit for 2019: $2,022,803 Performance for the First Quarter, 2020 for Plant Heaven i. You are told for the first quarter, i.e. period January 1 to March 31, 2020, revenues for Plant Heaven, is $510,000 as a result of the coronavirus. ii. Fixed cost in 2020 is the same as that of 2019 and as such this expense is expected to be 25% of the annual total for the first quarter. iii. You have committed to keep staff count the same for the first quarter, 2020, but there is no commitment to staff beyond the first quarter, 2020. iv. Salaries and utility costs are all variable. V. You are to assume that all variable costs, inclusive of utilities are the same in 2020 as that of 2019. Case Study - March 27 - Word MAILINGS REVIEW VIEW TABLE TOOLS DESIGN LAYOUT E 21 AaBbccDd AaBbCcDd AaBC AaBbcc AaB AaBCD AaBbCcDd AaBbc 1 Normal 1 No Spac.. Heading 1 Heading 2 Title Subtitle Subtle Em... Empha Styles Paragraph The following is a summary of key data of this hypothetical firm, Firm A (Nassau Heavy Equipment Operator) based on its financials as at December, 2019: January to December, 2019 10 No. of employees in 2019 Revenues: $4,223,419 ($500,000) ($375,616) Fixed Cost: Fixed Maintenance contracts for repairs of equipment: Annual Payments on a fixed interest rate loan: Annual payments for a fixed leased (expires 2025) for use of building to house equipment: Annual payments for fixed leased for office space (expires 2022) ($500,000) ($500,00) Variable Cost: Salaries for 2019: Utilities: Electricity, Water and Communications $275,000 $50,000 Service $2,022,803 Operating Profit for 2019: Factors to note, inter alia for Nassau Heavy Equipment Operator i. You are told for the first quarter, 2020, i.e. period January 1 to March 31, 2020, the revenues as a result of the coronavirus (COVID-19), is $450,000. 1. The projected fixed cost for 2020, is the same as what the company would have had in 2019, Further, the fixed cost is to be allocated on a quarterly basis, in other words, you must apportion, 25% of the annual fixed cost to derive the quarterly allocation. iii. For the first quarter of 2020, you have committed to keeping staff count, but there is no commitment beyond the first quarter. iv. Salaries and utilities are variable costs, i.e. discretionary. . The variable costs inclusive of utilities are the same in 2020 as that of 2019. t(2) - Case Study - March 27 - Word TABLE TOOLS CES MAILINGS REVIEW VIEW DESIGN LAYOUT S. . . E L cDd AaBbc d Ac ES E T Normal 1 No Spac. Heading 1 Heading 2 Title Subtitle Subtle Em. E Styles Paragraph CUSTIS, PICK UP Srpens irom the LOCKS anu urup IF unveries to the Terms Customers. The following is a summary of key data of this hypothetical firm, Firm A (Nassau Heavy Equipment Operator) based on its financials as at December, 2019: January to December, 2019 ($) 120 $2,787,654 No. of employees in 2019 Revenues: ($100,000) ($175,616) Fixed Cost: Fixed Maintenance contracts for repairs of equipment: Annual Payments on a fixed interest rate loan: Annual payments for a fixed leased (expires 2025) for use of building to house equipment: Annual payments for fixed leased for office space (expires 2022) ($100,000) ($50,00) Variable Cost: Salaries for 2019: Utilities: Electricity, Water and Communications Services: Operating Profit for 2019 - $1,318,954 $50,000 $2,022,803 Performance for the First Quarter, 2020 for Plant Heaven i. You are told for the first quarter, i.e. period January 1 to March 31, 2020, revenues for Plant Heaven, is $510,000 as a result of the coronavirus. Fixed cost in 2020 is the same as that of 2019 and as such this expense is expected to be 25% of the annual total for the first quarter. ii. You have committed to keep staff count the same for the first quarter, 2020, but there is no commitment to staff beyond the first quarter, 2020. iv. Salaries and utility costs are all variable, V. You are to assume that all variable costs, inclusive of utilities are the same in 2020 as that of 2019. You are asked to answer the following questions as part of your analysis: Which of the two (2) firms is likely to be in a better position to respond to the threat of COVID- 192 Hint: Your response should take into account the cost structure of the two firms, i.e. the firm's variable versus fixed cost. il. Apart from the response to COVID-19, which firm is likely to be better placed to do well during an expanding economy? Discuss and give reasons to support your answer. ill. Assuming that a turnaround in business as a result of COVID-19 is not expected to take place until the second quarter 2021, what measures would you take as the owner of Firm A? As the owner of Firm B? iv. What steps, if any, will you take as (a) owner of firm A; (b) owner of Firm B to make your business more resilient, i.e. revenue protection, if possible in the future? V. If you were a policymaker, which firm will you provide greater support? Again, provide the reasons to support your answer. vi. As a policymaker, what support will you provide to Firm A? What support will you provide to Firm B? Provide reason for the support provided to these firms." vil. What are your recommendations to the Government of The Bahamas based on the scenarios listed above