You are the consultants to ABC Janitorial who has a need to build a customized software to automate certain tasks. You will need to analyze the current situation and the desired outcomes and determine how much capital should be allocated to the project to recoup the investment in 18 months.

Current situation:

There are many full time and 8 part time administrative staff, 10 salespeople and many janitors working at the company.

The managers working in the company are each getting paid $100,000 Per Year.

There are 4 high volume printers and each cost $375 per month in lease payments and each cost $420 per month in service and consumables.

Part time administrative staff work 20 hours per week, get paid $20 per hour and receive no vacation.

All full time and part time employees have medical benefits that costs the company $470 per person per month.

The salespeople cannot write more new contracts because the administrative staff cannot keep up with the scheduling, billing, collections, and accounting tasks.

The salespeople, if supported properly can write more contracts at an average of $500 in net revenue per month from each contract.

Desired solution:

A digital solution to fully automate the scheduling, billing, collections and payment processing.

The company should go paperless and eliminate the use of 3 printers and keep only one.

Three managers will be demoted to a salesperson position and get reduced salaries of $60,000 each.

When the new digital solution is developed and implemented, each salesperson can write 40 more contracts per month. If a proper solution is implemented, the company can lay off the 8 part time staff.

What is your budget for the solution with an of 18 months recouping?

There are a total of 5 opportunities to increase revenue or cut costs.

Hint.

Calculate the savings and increased revenue over 18 months with the desired solution state.

1 month is not 4 weeks.