Show the basic estimating problem

Assignment Help Business Management

Reference no: EM1366914

Basic Estimating Problem

Your company is installing a new piece of machining equipment and a robotic arm. Your manager asks for the project costs by cost category as well as the total amount. Given the following information, develop a base cost estimate by grouping costs by Equipment / Material (items 1 - 4), Installation / Labor (items 5 and 6), and Overhead (items 7-9).

1. Two pieces of equipment costing $ 15,000 and $ 35,000

2. Material required for electrical hook-up is 400 feet at $ 25 per foot

3. Controls for each piece of equipment are estimated at $ 600 each

4. Required start-up material is 3,700 pounds at $ 2.70 per pound

5. Company labor for installation requires two maintenance specialists for two days at eight hours per day and $ 35 per hour

6. Contract labor is estimated at a fixed price of $ 7,500

7. Engineering is estimated to be 15% of (equipment / material) cost based on past experience

8. Inspection is estimated to be 3% of (labor) cost based on past experience

9. General and Administrative expenses are estimated to be 5% of the total of (equipment / material) and (labor) based on past experience.

Note: For this problem, only items 5 and 6 are considered "labor" for the purpose of calculating items 8 and 9.

Check answer: Total project cost = $94,737.60

Reference no: EM1366914

Questions Cloud

Determine the total two-year interest cost : Boatler Used Cadillac Corporation needs $80,000 in financing over the next 2-years. The company can borrow funds for 2-years at 9% interest every year.

Computing minimum value of avc : Consider the price-taking firm in competitive industry for raw chocolate. The market demand and supply functions for raw chocolate are estimated to be

Explanation of core values and core values in action : Explain why might an organization really need core values? How might you really see core values "in action?

Algorithm-find schedule to obtain maximum amount of profit : Give an algorithm to find schedule which obtains maximum amount of profit, assuming that all processing times are integers between 1 and n.

Show the basic estimating problem : Your manager asks for the project costs by cost category as well as the total amount

Estimating supply and demand curve : Assume there are two services offered in economy: dance clubs and college education. Both require the use of limited resources, but not all of the resources used in each one can be readily transferred to the other.

Using a financial calculator for mortgage loans : Lucy wishes to buy a house and has approached a bank and been informed that a thirty year mortgage loan with monthly payments and compounding would have an APR of 5.4 percent.

Trade-offs academic medical center : Stanford Medical Center is a well-known and well-respected academic medical center. It has been approached by the government of Vietnam to develop an affiliation with its main national hospital in Saigon.

Show the conflict in the workplace : If managers/leaders intervene every time there is a perceived problem and we address the situation, how will staff learn to deal with conflict in the workplace?

User Account

All Pages