Question
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 investment for the Subdivision Profit Center.
$202,583
$87,667
$16,882
$16,881
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