Question
In: Operations Management
LG is a small information systems consulting firm located in Phoenix, AZ. LG has just been...
LG is a small information systems consulting firm located in Phoenix,
AZ. LG has just been hired to design and install a local area network (LAN)
for the city of Phoenix’s social welfare agency. You are the manager for the project,
which includes one LG's professional and two interns from a local university.
You have just finished a preliminary scope statement for the project.
What type of contract(s) might be applicable to this project if you were to outsource certain aspects of your project to suppliers. Ensure that you justify your supplier contractual decisions based the inherent risks related to your selected contract type(s). Make any assumptions and document them accordingly.
The types of contracts are:
Cost-Plus Contract
Fixed Price Contract
Solutions
keosha answered 1 year agoRelated Solutions
Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and...
Raner, Harris & Chan is a consulting firm that specializes
in information systems for medical and dental clinics. The firm has
two offices—one in Chicago and one in Minneapolis. The firm
classifies the direct costs of consulting jobs as variable costs. A
contribution format segmented income statement for the company’s
most recent year is given:
Office
Total Company
Chicago
Minneapolis
Sales
$
412,500
100.0
%
$
82,500
100
%
$
330,000
100
%
Variable expenses
222,750
54.0
%
24,750
30...
Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and...
Raner, Harris & Chan is a consulting firm that specializes
in information systems for medical and dental clinics. The firm has
two offices—one in Chicago and one in Minneapolis. The firm
classifies the direct costs of consulting jobs as variable costs. A
contribution format segmented income statement for the company’s
most recent year is given:
Office
Total Company
Chicago
Minneapolis
Sales
$
637,500
100.0
%
$
127,500
100
%
$
510,000
100
%
Variable expenses
344,250
54.0
%
38,250
30...
Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and...
Raner, Harris & Chan is a consulting firm that specializes
in information systems for medical and dental clinics. The firm has
two offices—one in Chicago and one in Minneapolis. The firm
classifies the direct costs of consulting jobs as variable costs. A
contribution format segmented income statement for the company’s
most recent year is given
Office
Total Company
Chicago
Minneapolis
Sales
$
562,500
100.0
%
$
112,500
100
%
$
450,000
100
%
Variable expenses
303,750
54.0
%
33,750
30...
Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and...
Raner, Harris & Chan is a consulting firm that specializes
in information systems for medical and dental clinics. The firm has
two offices—one in Chicago and one in Minneapolis. The firm
classifies the direct costs of consulting jobs as variable costs. A
contribution format segmented income statement for the company’s
most recent year is given:
Office
Total Company
Chicago
Minneapolis
Sales
$
492,000
100
%
$
171,000
100
%
$
321,000
1
%
Variable expenses
253,000
50
%
59,000
30...
Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and...
Raner, Harris & Chan is a consulting firm that specializes
in information systems for medical and dental clinics. The firm has
two offices—one in Chicago and one in Minneapolis. The firm
classifies the direct costs of consulting jobs as variable costs. A
contribution format segmented income statement for the company’s
most recent year is given:
Assume that Minneapolis’ sales by major market are:
Market
Minneapolis
Medical
Dental
Sales
$
330,000
100
%
$
220,000
100
%
$
110,000
100
%...
Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and...
Raner, Harris & Chan is a consulting firm that specializes
in information systems for medical and dental clinics. The firm has
two offices—one in Chicago and one in Minneapolis. The firm
classifies the direct costs of consulting jobs as variable costs. A
contribution format segmented income statement for the company’s
most recent year is given:
Office
Total Company
Chicago
Minneapolis
Sales
$
450,000
100
%
$
150,000
100
%
$
300,000
100
%
Variable expenses
225,000
50
%
45,000
30...
Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and...
Raner, Harris & Chan is a consulting firm that specializes
in information systems for medical and dental clinics. The firm has
two offices—one in Chicago and one in Minneapolis. The firm
classifies the direct costs of consulting jobs as variable costs. A
contribution format segmented income statement for the company’s
most recent year is given:
Office
Total Company
Chicago
Minneapolis
Sales
$
825,000
100.0
%
$
165,000
100
%
$
660,000
100
%
Variable expenses
445,500
54.0
%
49,500
30...
Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and...
Raner, Harris & Chan is a consulting firm that specializes
in information systems for medical and dental clinics. The firm has
two offices—one in Chicago and one in Minneapolis. The firm
classifies the direct costs of consulting jobs as variable costs. A
contribution format segmented income statement for the company’s
most recent year is given:
Office
Total Company
Chicago
Minneapolis
Sales
$
1,050,000
100.0
%
$
210,000
100
%
$
840,000
100
%
Variable expenses
567,000
54.0
%
63,000
30...
Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and...
Raner, Harris & Chan is a consulting firm that specializes
in information systems for medical and dental clinics. The firm has
two offices—one in Chicago and one in Minneapolis. The firm
classifies the direct costs of consulting jobs as variable costs. A
contribution format segmented income statement for the company’s
most recent year is given:
Office
Total Company
Chicago
Minneapolis
Sales
$
675,000
100.0
%
$
135,000
100
%
$
540,000
100
%
Variable expenses
364,500
54.0
%
40,500
30...
Raner, Harris & Chan is a consulting firm that specializes in information systems for medical and...
Raner, Harris & Chan is a consulting firm that specializes
in information systems for medical and dental clinics. The firm has
two offices—one in Chicago and one in Minneapolis. The firm
classifies the direct costs of consulting jobs as variable costs. A
contribution format segmented income statement for the company’s
most recent year is given:
Assume that Minneapolis’ sales by major market are:
Market
Minneapolis
Medical
Dental
Sales
$
390,000
100
%
$
260,000
100
%
$
130,000
100
%...
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