You operate your own small building company and have decided to bid on a government contract to build a pedestrian walkway in a national park during the coming winter. The walkway is to be of standard government design and should involve no unexpected costs. Your present capacity utilization rate is moderate and allows sufficient scope to understand this contract, if you win it. You calculate your incremental costs to be $268,000 and your fully allocated costs to be $440,000. Your usual practice is to add between 60% and 80% to your incremental costs, depending on capacity utilization rate and other factors. You expect three other firms to also bid on this contract, and you have assembled the following competitor intelligence about those companies.
|
Issue |
Rival A |
Rival B |
Rival C |
|
Capacity Utilization |
At full capacity |
Moderate |
Very low |
|
Goodwill Considerations |
Very concerned |
Moderately concerned |
Not concerned |
|
Production Facilities |
Small and inefficient plant |
Medium sized and efficient plant |
Large and very efficient plant |
|
Previous Bidding Pattern |
Incremental cost plus 35-50% |
Full cost plus 8-12% |
Full cost plus 10-15% |
|
Cost Structure |
Incremental costs exceed yours by about 10% |
Similar cost structure to yours |
Incremental costs 20% lower but full costs are similar to yours |
|
Aesthetic Factors |
Does not like winter jobs or dirty jobs |
Does not like messy or inconvenient jobs |
Likes projects where it can show its creativity |
|
Political Factors |
Decision maker is a relative of the buyer |
Decision maker is seeking a new job |
Decision maker is looking for a promotion |
Show all of your calculations and processes. Describe your answers in three- to five-complete sentences.
A.) What price would you bid if you must win the project?
In: Economics
1. Alicia is the owner-operator of Cool Beans, a local coffee shop. For the past year, Cool Beans sold 215,000 drinks at an average price of $2.95 per serving. Her average variable cost per serving was $1.15. Currently, she has been using local TV and newspapers to generate interest and awareness at a cost of $171,000 per year. She recently contacted Brushfire Social Media and they estimated they could reach the same number of people in her community with a social media budget at half the cost, though it would require an additional one-time investment of $14,000 in their website and social platforms. As an additional option, Brushfire suggested a separate promotional campaign that would offer a $1 discount to any person who likes their social media page. Brushfire estimates that Cool Beans would sell an additional 5,900 cups with this discount and this new campaign would cost $2,500.
1. What is the Marketing ROI for the Brushfire website and social media plan compared to their current approach? ___ %
2. SleepItOff Properties is a West Coast company that owns and operates several hotel chains. Here is their partially completed income statement for the most recent fiscal year. Matt Tress, a summer intern for the finance team was asked to calculate some basic performance metrics as part of his training. He also was told that the company had $15 million in cash and $206 million of other assets. For Year Ending Dec 31, 2013 $Mill Total Revenue $88 Cost of Revenue $31 Gross Profit ? General, Selling and Admin $20 Depreciation $10 Operating Income or Loss ? Interest Expense $15 Pre-Tax Income ? Income Taxes ? Net Income ? If SleepItOff's Tax Rate is 30%
2. What is SleepItOff's Net Income?
In: Finance
4.How does DPI breathing technique differ from that recommended with a MDI?
In: Nursing
An investor offers you $801,066 in exchange for shares of your start-up company. The investor demands an annual rate of return of 62%, and expect that your IPO will be in 5 years. At that time you expect your firm to have annual income of around $1,811,566 dollars. A similar firm was recently acquired for $18,930,059 dollars. At the time of acquisition, their income was $1,573,471 million dollars per year.
What percentage of your equity should you give to the investor?
Enter your answer as a percentage, without decimals. For example, if your answer is 0.76543, that's 76.543%, which rounds to 77%.
In: Finance
For bonds with _________ , bond issuers are required to retire a certain percentage of bonds each year.
call provision
conversion
sinking fund
speculative grades
In: Finance
For bonds with _________ , bond issuers are required to retire a certain percentage of bonds each year.
call provision
conversion
sinking fund
speculative grades
In: Finance
An excellent free throw percentage would be something around 90%. That is, such a basketball player would make 90% of the free throws (foul shots) they took. If the player is given 6 chances to take a free throw shot in a game.
(a) Calculate the probability that this type of player makes all 6 of their free throw shots.
(b) Calculate the probability that this type of player misses all 6 of their free throw shots.
(c) Calculate the probability that this type of player makes at least half of their 6 free throw shots.
In: Statistics and Probability
The table shows the estimated percentage P of the population of a certain country that are mobile-phone subscribers. (End of year estimates are given.)
| Year | 1997 | 1999 | 2001 | 2003 | 2005 | 2007 |
| P | 2.1 | 8.2 | 15.7 | 25 | 45.7 | 62.5 |
(a) Find the average rate of change of P.
(i) From 2003 to 2007 ........................... percentage
points per year
(ii) From 2003 to 2005 ............................. percentage
points per year
(iii) From 2001 to 2003 ............................... percentage
points per year
(b) Estimate the instantaneous rate of growth in 2003 by taking the
average of two average rates of change. (Use the average rates of
change for 2001 to 2003 and 2003 to 2005.)
........................... percentage points per year
(c) Estimate the instantaneous rate of growth in 2003 by sketching
a graph of P and measuring the slope of a tangent. (Sketch
your graph so that it is a smooth curve through the points, and so
that the tangent line has an x-intercept of 1999.3 and
passing through the point
(2006, 46.6).
Round your answer to two decimal places.)
.................................... percentage points per year
In: Math
5. It is known that the temperature of a laboratory experiment (X) and the experiment’s percentage yield (Y ) approximately satisfy the linear regression assumptions. The following sample was collected: Temp 110 110 120 130 140 150 160 170 180 190 200 %Yield 45 52 53 59 63 69 74 78 86 89 97 (a) Plot the data and the sample least squares regression line. (b) Interpret the slope of your sample least squares regression line. (c) Given a temperature of 165 what is the expected %yield? (d) Compute a 95% C.I. for βˆ. (e) Interpret the C.I. constructed in (d).
In: Statistics and Probability
5. It is known that the temperature of a laboratory experiment (X) and the experiment’s percentage yield (Y ) approximately satisfy the linear regression assumptions. The following sample was collected: Temp 110 110 120 130 140 150 160 170 180 190 200 %Yield 45 52 53 59 63 69 74 78 86 89 97 (a) Plot the data and the sample least squares regression line. (b) Interpret the slope of your sample least squares regression line. (c) Given a temperature of 165 what is the expected %yield? (d) Compute a 95% C.I. for βˆ. (e) Interpret the C.I. constructed in (d).
In: Statistics and Probability