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    Assignment 1 - Quant

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    Beenish Jafri
    The document contains 4 appendices that calculate costs and profits for different smart gathering events: 1) Appendix 1 calculates hourly costs for different employee roles needed to run the events. 2) Appendix 2 estimates employee time required for each role at 3 sample events. 3) Appendix 3 calculates overhead, contribution margin, and gross profit for each of the 3 events. 4) Appendix 4 explores how to make the lowest profit event (SG1) profitable by increasing its price.

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    Assignment 1 - Quant

    Uploaded by

    Beenish Jafri
    5 views4 pages
    The document contains 4 appendices that calculate costs and profits for different smart gathering events: 1) Appendix 1 calculates hourly costs for different employee roles needed to run the events. 2) Appendix 2 estimates employee time required for each role at 3 sample events. 3) Appendix 3 calculates overhead, contribution margin, and gross profit for each of the 3 events. 4) Appendix 4 explores how to make the lowest profit event (SG1) profitable by increasing its price.

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    QUANTUTY

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    Assignment 1 - Quant (1)

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    The document contains 4 appendices that calculate costs and profits for different smart gathering events: 1) Appendix 1 calculates hourly costs for different employee roles needed to run the events. 2) Appendix 2 estimates employee time required for each role at 3 sample events. 3) Appendix 3 calculates overhead, contribution margin, and gross profit for each of the 3 events. 4) Appendix 4 explores how to make the lowest profit event (SG1) profitable by increasing its price.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    5 views4 pages

    Assignment 1 - Quant

    Uploaded by

    Beenish Jafri
    The document contains 4 appendices that calculate costs and profits for different smart gathering events: 1) Appendix 1 calculates hourly costs for different employee roles needed to run the events. 2) Appendix 2 estimates employee time required for each role at 3 sample events. 3) Appendix 3 calculates overhead, contribution margin, and gross profit for each of the 3 events. 4) Appendix 4 explores how to make the lowest profit event (SG1) profitable by increasing its price.

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    © All Rights Reserved
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    of 4

    Appendix 1:

    Calcutation/Estimatimation the Capacity Cost Rate

    Criteria - Assumed
    Average work day per month 20 Average Total Work Day in a Year
    Total work hours per day 8 Average Total Hours Per Year
    unpaid lunch per day (Hour) 1 Average Unpaid Non-Productive hours (Yearly)
    paid break per day (Hours) 0.30 Average Paid Non-Productive hours (Yearly)
    Average Total Productive Hours (Yearly)
    Suppose 95% Time is Productive

    Employees Average Annual Salary


    Activity Cost Per Hour
    required Per Employee
    Host Identification 2 $66,716 $43.67
    Venue Interaction 1 $48,578 $31.80
    List Building 3 $74,464 $48.75
    Guest Interaction 3 $93,886 $61.46
    Account Management 3 $83,911 $54.93

    Appendix 2:
    Estimation of the Demand for Resource Capacity (time) that Each Cost Object Re

    Resources (Time) Required Smart Gathering 1 Smart Gathering 2 Smart Gathering 3


    Host Identification 50 2 30
    Venue Interaction 10 1 9
    List Building 52 0 25
    Guest Interaction 50 10 10
    Account Management 50 10 40
    212 23 114

    Total Cost Smart Gathering 1 Smart Gathering 2 Smart Gathering 3


    Host Identification $2,184 $87 $1,310
    Venue Interaction $318 $32 $286
    List Building $2,535 $0 $1,219
    Guest Interaction $3,073 $615 $615
    Account Management $2,746 $549 $2,197
    10,856 1,283 5,627

    Appendix 3:
    Time Driven Activity Based Analysis Profitabili

    Smart Gathering 1 Smart Gathering 2 Smart Gathering 3


    SG Price $15,000 $8,833 $16,500
    Direct Material Cost $1,642 $1,520 $4,224
    Direct Labor Cost $3,946 $2,401 $2,274
    Contribution Margin $9,412 $4,912 $10,002

    Overhead
    Host Identification $2,184 $87 $1,310
    Venue Interaction $318 $32 $286
    List Building $2,535 $0 $1,219
    Guest Interaction $3,073 $615 $615
    Account Management $2,746 $549 $2,197
    Total Overhead 10,856 1,283 5,627

    Gross Margin -$1,444 $3,629 $4,375


    Gross Margin % -9.63% 41.08% 26.52%

    Appendix 4
    How can SG1 be profitable?

    SG Price $15,000 $16,500 17,000


    Direct Material Cost $1,642 $1,642 $1,642
    Direct Labor Cost $3,946 $3,946 $3,946
    Contribution Margin $9,412 $10,912 $11,412

    Overhead
    Host Identification $2,184 $2,184 $2,184
    Venue Interaction $318 $318 $318
    List Building $2,535 $2,535 $2,535
    Guest Interaction $3,073 $3,073 $3,073
    Account Management $2,746 $2,746 $2,746
    Total Overhead 10,856 10,856 10,856

    Gross Margin -$1,444 $56 $556


    Gross Margin % -9.63% 0.34% 3.27%
    acity Cost Rate

    240
    1,920
    240
    72
    1,608
    1,528

    e) that Each Cost Object Requires

    y Based Analysis Profitability Analysis

    Smart Gathering 1&2 Smart Gathering 2&3 Smart Gathering 1&3 Smart Gathering 1,2&3
    $23,833 $25,333 $31,500 $40,333
    $3,162 $5,744 $5,866 $7,386
    $6,347 $4,675 $6,220 $8,621
    $14,324 $14,914 $19,414 $24,326

    $2,271 $1,398 $3,494 $3,581


    $350 $318 $604 $636
    $2,535 $1,219 $3,753 $3,753
    $3,688 $1,229 $3,688 $4,302
    $3,296 $2,746 $4,944 $5,493
    12,139 6,910 16,483 $17,766

    $2,185 $8,004 $2,931 $6,560


    9.17% 31.60% 9.31% 16.26%

    18,000 19,000 20,000


    $1,642 $1,642 $1,642
    $3,946 $3,946 $3,946
    $12,412 $13,412 $14,412

    $2,184 $2,184 $2,184


    $318 $318 $318
    $2,535 $2,535 $2,535
    $3,073 $3,073 $3,073
    $2,746 $2,746 $2,746
    10,856 10,856 10,856

    $1,556 $2,556 $3,556


    8.64% 13.45% 17.78%

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