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Your Company bid ~$6M in work and won $3,400,000 total contracts, all finish this year. The cumulative at time-of-bid Gross Margin was 14.7% Gross
Your Company bid ~$6M in work and won $3,400,000 total contracts, all finish this year. The cumulative at time-of-bid Gross Margin was 14.7% Gross Margin. The company has Total Assets of $1,380,000 and Owners Equity of $830,000. Current Overhead (SG&S) is $425,000 annually. How much Profit must we earn to pay the shareholders 10% ROE? How much Gross Profit ($) does Your Company need to earn to cover the Owner's Return and the Overhead? How much in Gross Profit ($) is Your Company poised to earn this year? How much OH can we afford given the 14.7% GPC & required 10% ROE goal?
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