Questions
* Please I want answer for these questions and I will give big thump for it....

* Please I want answer for these questions and I will give big thump for it. Thanks

Read the following case study and answer the following question.

The Five star Hotel ELV (Extra Low Voltage) project was located in Bahrain and completed in 2011. The purpose of this project was to install, test, and commission the IT, communication infrastructure, and services for the hotel. The ELV project was part of a total program to deliver 11 sub system, including installation of data, voice, music, wireless and CCTV systems. The project stakeholders included the hotel owner, the consultant they had employed on their behalf and various civil, electrical and construction teams involved in implementing the ELV project.

This case study focuses on the Audio visual (AV)sub system, primarily installation of projectors and screens in the meeting rooms and conference facilities. Renosh Thomas as the vendor’s project manager was responsible for issuing the client with complete drawings detailing the projects electrical requirements. Renosh knew these drawings needed to be accurate as these would be handed over to the civil and construction teams for use when building the sites. The final phases of the ELV project required Renosh team to visit the sites, install, and test the electrical equipment.

At initiation and during the project planning phases, the AV requirements were issued and communicated via drawings between the consultant, appointed by the customer and Renosh electrical team. The product specifications were based on lessons learned and templates from a similar project implemented in Dubai. The project scope was determined via the bill of quantities, materials and tender documents.

Renosh received only electrical drawings for the sites and continued to plan the installation requirements based on these drawings, going by the assumption that they were correct, accurate and most recent. Throughout planning, the electrical team was not privy to any of the civil or construction drawings from other teams, and hence remainded completely unaware of structural changes being made on the original plans that they were still working on too.

During installation of the AV system, the team encountered a major problem- the projection was faulty. The projectors and screens were not aligning; images are cut off and unclear. Upon investigation it became apparent that certain structural changes had been added, drawings and calculations inaccurate.

The customers response to this communication oversight was to respond by sending Renosh a full collection of civil and construction drawings including all the latest revisions. Renosh spent considerable time reviewing the drawings to identify the relevant adjustments. This resulted in delays, rework and wasted time as he ploughed through drawings, many of which were excessive to his requirements.

The problem the installation team encountered was that ceilings had been elevated higher than the original design and this had been approved by the customer who failed to communicate the new changes and approvals to Renosh electrical team. Renosh revised and issued new electrical drawings to the customer that went through the approval process again.

The site had been handed over from civil and construction completed with decoration. However, this vital communication error resulted in the solution requiring reworking of parts of the site, such as opening the ceilings to access the electrical panels and make the new changes. This impacted the schedule by 8-10 days and reworked costs of opening, adjusting and redecorating the site.

Questions:

  1. Who are the project management stakeholders? How would you design stakeholder management strategies to address their concerns?
  2. What planning, monitoring and control actions could the project manager take to avoid the situation?
  3. How would you redesign the communications management processes to minimize the problems experienced by project managers?

In: Operations Management

Example 2-1. The demand: 50,000 yd3 of mixed-asphalt-paving material during four months (17 weeks of 5...

Example 2-1. The demand: 50,000 yd3 of mixed-asphalt-paving material during four months (17 weeks of 5 days/week)

Cost Factor

Site A

Site B

Average hauling distance

4 miles

3 miles

Monthly rental of the site

$2,000

$7,000

Cost to set up and remove equipment

$15,000

$50,000

Hauling expense

$2.75/yd3-mile

$2.75/yd3-mile

Flagperson

Not required

$150/day

Questions:

  1. Which site has the lowest total cost?
  2. For the site chosen, when will the contractor start having a breakeven (e.g. after delivering a certain amount of material)?
  3. What would be the breakeven amount for the unit price equals to $15, $11.5, and $10?

Solution

You are encouraged to replicate the approach presented here to solve the question. As we discussed in class, write down every detail will help you think and prevent unintentional mistake.

Part 1. Total cost = Fixed cost + Variable cost

For site A,

Variable cost (hauling cost) = unit produced * unit cost = ____________________,. yd3 * ( _____________________ miles * $ _____________________ / yd3-mile) = $ _____________________ . Do replace the comma symble of thousands with a space, e.g. "10 000" instead of "10,000".

Fixed cost = rent + setup + flagperson = $ _____________________ /month * _____________________ months + $ _____________________ + $ ___________________ = $ _____________________

So site A’s total cost = $ _____________________

In the same token, for site B,

Variable cost = _____________________ yd3 * ( _____________________ * $ _____________________ /yd3-mile ) = $ _____________________

Fixed cost = rent + setup + flagperson = $ _____________________ /month * _____________________. months + $ _____________________ + $ _____________________ /day * _____________________ days/week * _____________________ weeks = $ _____________________ + $ _____________________+ $ ______________________ = $ _____________________

So site B’s total cost = $ _____________________ <= The contractor will chose site B due to its lower cost.


Question 2 of 3

What follows is a fill in the blank question with 10 blanks.

Part 2. Now we need to find the breakeven point. As we discussed in class, the contractor will spend 4 months to deliver everything. So we are in fact looking for a specific amount of material to be delivered when the contractor’s revenue equals the total cost of delivering that amount of material.

The textbook states that the contractor will sell the material for $12/yd3.

Assuming an amount of material, Y yd3, will need to be delivered in order to have a breakeven, then the total cost at that point of time is

Fixed cost = $ _____________________ for site B, which is not going to change due to the amount being delivered.

Variable cost = unit produced * unit cost = Y yd3 * ( _____________________miles * $ _____________________ /yd3-mile ) = $ _____________________ * Y

The revenue at that point = unit sold * unit price = Y yd3 * $ _____________________ /yd3 = $ _____________________ * Y

To have a breakeven, the revenue has to equal to the total cost, so

$ _____________________ * Y = fixed cost + variable cost = $ _____________________ + $ _____________________ * Y

So the amount of material to be delivered, Y = _____________________ yd3


Question 3 of 3

What follows is a fill in the blank question with 3 blanks.

Part 3. The same equation, revenue = total cost, can be used here. The only thing changed is the unit price.

For unit price = $15 /yd3, the amount of material to be delivered, Y = _____________________yd3 (write down your answer as an integer, e.g. no decimal points)

Do note that you might have tried to round off the answer. However, that answer is not correct as it is not enough to reach the breakeven point (the shaded area in the right-hand side).

In the same token, for unit price = $11.5 /yd3, the amount of material to be delivered, Y = _____________________ yd3 (write down your answer as an integer).

For unit price = $10 /yd3, the amount of material to be delivered, Y = _____________________ yd3 (write down your answer as an integer).

Do note that the total amount to be delivered is 50,000 yd3 within four months, which is less than your amount above. What this means is that the two lines just convert too slowly, way behind the total amount required. It also means that the unit price is not enough to cover everything; the contractor will lose money at the end.


            

In: Accounting

East West Company produced 204,000 watches last year and sold all of them during the last...


East West Company produced 204,000 watches last year and sold all of them during the last year.
The average selling price per watch was $20.00
The average fixed manufacturing cost was $7.00 per unit
The company reported a gross margin of $1,428,000 in last year's income statement.
Company had no beginning or ending inventory for the last year.
Assume that company incurred no other costs.
Required:
(A) Unit variable manufacturing cost during the last year
(B) Total variable manufacturing cost incurred during last year
(C) Total contribution margin generated during last year.
Round all your final answers to two digits.
Type only the number and no dollar sign or any other text in the answer box.
Unit Variable manufacturing cost $
Total Variable manufacturing cost incurred $
Total contribution generated during last year $

In: Accounting

Marginal Incorporated (MI) has determined that the before cost of debt is 6% for the first...

Marginal Incorporated (MI) has determined that the before cost of debt is 6% for the first $100 million in bonds it issues, and 8% for any bonds issued above $100 million. Its cost of preferred stock is 9%. The cost of internal equity is 12% and its cost of external equity is 14%. Currently, the firm’s capital structure has $600 million of debt, $100 million of preferred stock, and $300 million of common equity. The firm’s marginal tax rate is 30%. The firm is currently making projections for next period. Its managers have determined that the firm should have $75 million available from retained earnings for investment purposes next period.

What is the firm’s marginal cost of capital at each of the following total investment levels?        

  1. Total investment level of $280 million?
  2. II. Total investment level of $200 million?

III. Total investment level of $77 million?                                                                                                           

In: Finance

Week 2 Brisbane Indoor Sports, a sporting complex, has opening hours that fluctuate from month to...

Week 2 Brisbane Indoor Sports, a sporting complex, has opening hours that fluctuate from month to month. The electricity costs and hours of operation for past six months is listed below: Month Total hours of operation Total electricity cost January 650 $ 4,240 February 700 $ 4,400 March 800 $ 4,800 April 600 $ 4,200 May 550 $ 3,700 June 500 $ 3,600 Required: a) Use the high-low method to estimate the cost behaviour for the complex’s electricity costs, assuming that the variable costs vary in proportion to the hours of operation. Express the total cost behaviour in formula form (Y = a + bx). What is the variable electricity cost per hour of operation? b) During July, the complex will open for 570 hours. Predict the complex’s total electricity costs for July using the cost estimation method employed in above requirement a). (3marks) c) What is the main drawba

In: Accounting

On June 15, 2018, Chang purchases $2,537,000 of equipment (7-year property) for use in her business....

On June 15, 2018, Chang purchases $2,537,000 of equipment (7-year property) for use in her business. It is her only purchase of business property in 2018. Chang has taxable income from her business of $2,500,000 before any cost recovery.

Click here to access depreciation Table 8-2.

a.  Assuming Chang does not elect Section 179 and elects out of bonus depreciation, what is her total 2018 cost recovery?
$

b.  Assuming Chang elects the maximum Section 179 deduction allowable and elects out of bonus depreciation, what is her total 2018 cost recovery?
$

c.  Assuming Chang elects the maximum Section 179 deduction allowable and does not elect out of bonus depreciation, what is her total cost recovery?
$

d.  Assuming Chang does not elect Section 179 deduction allowable and does not elect out of bonus depreciation, what is her total cost recovery?
$

In: Accounting

Marginal Incorporated (MI) has determined that the before cost of debt is 6% for the first...

Marginal Incorporated (MI) has determined that the before cost of debt is 6% for the first $100 million in bonds it issues, and 8% for any bonds issued above $100 million. Its cost of preferred stock is 9%. The cost of internal equity is 12% and its cost of external equity is 14%. Currently, the firm’s capital structure has $600 million of debt, $100 million of preferred stock, and $300 million of common equity. The firm’s marginal tax rate is 30%. The firm is currently making projections for next period. Its managers have determined that the firm should have $75 million available from retained earnings for investment purposes next period.

What is the firm’s marginal cost of capital at each of the following total investment levels?       

  1. Total investment level of $280 million?
  2. II. Total investment level of $200 million?

III. Total investment level of $77 million?  

In: Finance

Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows:      Number...

Hermosa, Inc., produces one model of mountain bike. Partial information for the company follows:

    
Number of bikes produced and sold 490 830 980
Total costs
Variable costs $ 119,560 $ ? $ ?
Fixed costs per year ? ? ?
Total costs ? ? ?
Cost per unit
Variable cost per unit ? ? ?
Fixed cost per unit ? ? ?
Total cost per unit ? $ 518.75 ?

     
Required:
1. Complete the table. (Round your "Cost per Unit" answers to 2 decimal places.)


  
2. Calculate Hermosa’s contribution margin ratio and its total contribution margin at each sales level indicated in the table assuming the company sells each bike for $660. (Round your percentage answers to 2 decimal places. (i.e. .1234 should be entered as 12.34%.))



4. Calculate Hermosa’s break-even point in units and sales revenue. (Round your answers to the nearest whole number.)

In: Accounting

Cornerstone Exercise 6.10 (Algorithmic) Cost Information and the Weighted Average Method Morrison Company had the equivalent...

Cornerstone Exercise 6.10 (Algorithmic)
Cost Information and the Weighted Average Method

Morrison Company had the equivalent units schedule and cost information for its Sewing Department for the month of December, as shown below.

Direct Materials Conversion Costs
Units completed 43,000 43,000
Add: Units in ending work in process ×
     Percentage complete:
        15,000 × 100% direct materials 15,000
        15,000 × 45% conversion materials 6,750
Eqivalent units of output 58,000 49,750
Costs:
        Work in process, December 1:
          Direct materials $65,000
          Conversion costs 12,000
          Total work in process $77,000
        Current costs:
          Direct materials $580,000
          Conversion costs 182,000
          Total current costs $762,000

Required:

1. Calculate the unit cost for December, using the weighted average method. Do NOT round interim calculations and, if required, round your answer to the nearest cent.
$ per equivalent unit

2. Calculate the cost of goods transferred out, calculate the cost of EWIP, and reconcile the costs assigned with the costs to account for.

Cost of goods transferred out:

Units completed $
Cost of EWIP
Total costs assigned (accounted for) $

Reconciliation
Cost to account for:

BWIP $
Current (December)
Total $

3. What if you were asked to show that the weighted average unit cost for materials is the blend of the November unit materials cost and the December unit materials cost? The November unit materials cost is $4.33 ($65,000/15,000), and the December unit materials cost is $13.49 ($580,000/43,000). The equivalent units in BWIP are 15,000, and the FIFO equivalent units are 43,000. Calculate the weighted average unit materials cost using weights defined as the proportion of total units completed from each source (BWIP output and current output). Do NOT round interim calculations and, if required, round your answer to the nearest cent.
$ per unit

In: Accounting

Cost Information and the Weighted Average Method Morrison Company had the equivalent units schedule and cost...


Cost Information and the Weighted Average Method

Morrison Company had the equivalent units schedule and cost information for its Sewing Department for the month of December, as shown below.

Direct Materials Conversion Costs
Units completed 44,000 44,000
Add: Units in ending work in process ×
     Percentage complete:
        19,000 × 100% direct materials 19,000
        19,000 × 45% conversion materials 8,550
Eqivalent units of output 63,000 52,550
Costs:
        Work in process, December 1:
          Direct materials $66,000
          Conversion costs 15,000
          Total work in process $81,000
        Current costs:
          Direct materials $570,000
          Conversion costs 185,000
          Total current costs $755,000

Required:

1. Calculate the unit cost for December, using the weighted average method. Do NOT round interim calculations and, if required, round your answer to the nearest cent.
$  per equivalent unit

2. Calculate the cost of goods transferred out, calculate the cost of EWIP, and reconcile the costs assigned with the costs to account for.

Cost of goods transferred out:

Units completed $
Cost of EWIP
Total costs assigned (accounted for) $

Reconciliation
Cost to account for:

BWIP $
Current (December)
Total $

3. What if you were asked to show that the weighted average unit cost for materials is the blend of the November unit materials cost and the December unit materials cost? The November unit materials cost is $3.47 ($66,000/19,000), and the December unit materials cost is $12.95 ($570,000/44,000). The equivalent units in BWIP are 19,000, and the FIFO equivalent units are 44,000. Calculate the weighted average unit materials cost using weights defined as the proportion of total units completed from each source (BWIP output and current output). Do NOT round interim calculations and, if required, round your answer to the nearest cent.
$  per unit

In: Accounting