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Your company worked on the projects shown as follows during the last year. Analyze the different profit centers based on their gross profit margins, their
Your company worked on the projects shown as follows during the last year. Analyze the different profit centers based on their gross profit margins, their return on cash invested in the projects, and their use of managements time. One project manager can oversee four subdivisions or one road construction project.
Profit Center | Revenues ($) | Gross Profit ($) | Ave. Monthly Investment ($) | Duration Months |
Subdivision | 500,000 | 73,334 | 83,333 | 6 |
Subdivision | 375,000 | 46,954 | 75,000 | 5 |
Subdivision | 177,000 | 17,079 | 44,250 | 4 |
Road | 1,123,000 | 137,968 | 140,375 | 8 |
Road | 1,564,800 | 112,660 | 156,480 | 10 |
Calculate the average monthly profit generated by a Road project.
$14,256 | ||
$296,855 | ||
$125,314 | ||
$15,480 |
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