Pm 592 Week 2

Describe a setting in which you have collaborated or interacted with people whose experiences and/or beliefs differ from yours. Address your initial feelings and how those feelings were or were not changed by this experience.

(TCO B) You are the project manager for three projects. You are about to estimate costs for these three projects. Given the below information on each project, recommend an appropriate estimation method and justify your answer for each.

The CanGo organization is lacking a Project Budget. The group is disorganized and unsure if the project can afford necessary equipment and resources required to complete the project. CanGo’s project team or the project manager needs to develop a project budget, including the goal of the project budget. The project manager will use this budget to help determine if the project is on track and the budget will be used by a number of personal as a guideline to fulfill project milestones. Aspects that need to be considered and included in the project budget are employee compensation, contract services such as hardware and software, equipment and supplies, and the budget should include overhead expenses. Overhead and indirect costs allow the project to absorb part of the administrative costs of the organizations daily operations. Many software options are available on the market today, such as

2. Senior management has asked you to plan for the support required in the first year for the remote capture system after the project is completed. Assume that there will be two phone service people working 24-7 all year, one person providing online support 24-7 all year, four marketing people working on promotions full-time the first six months, two marketing people working on promotions the last six months, and one internal IT person providing technical support half-time all year. Create a resource histogram, similar to the one in Figure 9-6, based on this information.

250,000 + 5,000 + 57,500 = 312,500 total base . 250,000/312,500 = 80% of the actual price of the arrangement to be allocated to the software. 5,000/ 312,500 = 1.6% of the actual price of the arrangement to be allocated to the installation. 57,500/ 312,500 = 18.4% of the actual price of the arrangement to be allocated to the technical support. The relative price of the software would be $240,000, the relative price of the installation would be $4,800 and the

1.2 The basis of an estimation is made up of three main categories. These are Labour, Materials and Plant and together, they define the approximated final price of the project. However, these do not include extras such as overheads, profits or preliminaries.

Soda fountain bar 2 pizza ovens Salad and pizza/dessert bar Approximately 100 square foot commercial refrigerator 2 cash registers 6 video game vending machines Management office with desk and lower-priced laptop computer Staff lunchroom equipment such as microwave, sink, cupboards and refrigerator 20 four-seater tables with chairs Busing cart for transporting dirty dishes from the dining area to the dishwashing area 140 sets of dishes, including cutlery and drinking cups Commercial dishwasher Miscellaneous cooking and food handling equipment like trays, lifters, spoons, pots etcetera The cost of an average of 7 employees on the payroll. All

That’s about 4.6 days of Boun Amici sandwiches. So the cost per unit of this satisfying meal is off the charts.

Peter’s Peripherals assembles multimedia upgrade kits --- sets of components for adding sound and video to desktop computers. The demand for their kits for the next four quarters is estimated in the table below. Unit manufacturing cost for each kit is $160. Holding costs on each kit is $80 per quarter. Any kit that must be delivered late is assessed a backorder cost of $120. Each worker is capable of finishing 10 kits per quarter. If the company chooses to vary work force levels, it will incur costs of $400 for each additional worker; $600 for each termination. The company currently has 28 employees.

Is there a way to estimate the cost of services and product to customers such that Stuart’s Branded Foods can be competitive in their market? Use the illustrations of the two customers to demonstrate your approach. What would be the selling price per kit or per cup for each customer?

By computing the various variable costs as well as the margins, the retail price would be $6.82 to wholesalers and $8.32 to retailers. It will cost $6.37 for variable costs and Zenith is expecting a $30,000 incremental cost for slotting in advertising. Compared to others in the industry the price will need to be around the average. It will technically be $8.32 per tub, which contains around 11 lbs of food. Zenith would need to sell at least 220,512 units if the advertising cost is $400,000 and 323,076 units if the advertising cost is $600,000.

3) Using the budget Data, what was the total expected cost per unit if all manufacturing and shipping overhead (both variable and fixed) were allocate to planned production? What was the actual cost per unit of production and shipping?

However, there are several factors for the company to choose its pricing strategy. In this case, it may be better if the company choose to sell its product at $21.50 instead of $15.50. This is due to the fact that price-cutting appears to be not a good strategy in this industry. If every player in the same industry starts to lower the price of their products, every company will end up having the low price, which in turns lead to a low profit margin. Moreover, referring to the calculation in a below table, it also implies that if the price is lower than $12, sales will not be able to cover the variable cost incurred, thus it will bring about a loss in net profit.

Under the existing cost system for the turning machine area, there are two direct costs and three cost pools for overhead costs. The two direct costs are simply Direct Labor and Direct Material, which are traced to the cost object, which is Machine Parts. The total overhead is split into three cost pools, which are the following: overhead applied on direct labor, overhead applied on material dollars, and overhead applied on ACTS machine hours. Furthermore, each cost pool is broken down into direct and period sub categories. The mentioned cost pools for the following cost drivers: Direct Labor dollars, Material dollars, and machine hours.

Set a price is important for a new product since it will affect the sales of Subway products, for instance Subway Juicy Fruity in the market. Subway Juicy Fruity can set prices that lower than the substitutes goods so that the demand of Subway Juicy Fruity will increase. Subway has to deliver better customer satisfaction than competitors.