Answer/complete both of the following two questions. Submit your work products t

Question

Answer/complete both of the following two questions. Submit your work products to the appropriate Assignments folder by the close of the session. Be sure to show all work.   Ensure each file you post includes your last name in the file name.

Question 1: Your firm designs training materials for computer training classes, and you have just received a request to bid on a contract to produce a complete set of training manuals for an 8-session class. From previous experience, you know that your firm follows an 85% learning rate. For this contract, it appears that the effort will be substantial, running 50 hours for the first session. Your firm bills at the rate of $100/hour and the overhead is expected to run a fixed $600 per session. The customer will pay you a flat fixed rate per session (Per Session Price.) If your profit markup is 20%, what will be the Total Price, the Per Session Price, and at what session will you break even?

Learning rate = Hourly rate = Overhead Rate per session = markup = First Session Hrs Session Time Fixed Cost Cumulative Time Session Cost Cumulative Cost Cumulative Revenue 1 0.00 2 #NUM! 3 #NUM! 4 #NUM! 5 #NUM! 6 #NUM! 7 #NUM! 8 #NUM! a. Total Total Price: $           -   b. Per Session Price: $           -   v. Breakeven point:

Explanation / Answer

A. Total price = 8 sessions x [(50 hours x $100 per hour) + $600 fixed per session] = $44,800

B. Per session price = (50 Hours x $100 per hour) + $600 fixed per session = $5,600

C. Mark up is 20%. it means If cost is 1 then total price is 1+20% = 1.2.

when total price is 44800 then cost = 44800/1.2 = 37,333.33

Revenue generation is constant per session, which is $5600.

so our Break even session will be 37333.33/5600 = 6.67 = 7th session.

6.67 is converted into 7 because 6.67th can't be treated as 6th session. (even 6.11 can't be treated as 6th session).

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.