Saturday, January 29, 2011

Tutorial - 3

WBS ( Work Breakdown Structure ) :















Cost Computation:-




 INITIAL COST:-
Cost Calculation for 4 months (Assumptions):

Total Cost = (Fixed + Variable + Other)              
                     = (47000 + 107000 + 16400)     
                     = 170,400      
Project Completion = 4 months (including weekends)                                                                      
Total working days  = 90 days (excluding weekends)           

CONTRACTOR:
  1) Smart Agency (Manpower Hiring)                                   S$  10,000       
 2) Compass Enterprises (Construction/Office Setup)  –  S$    5,000
 3) Globalware Trading (Utilities)                                           S$    4,000   
 4) KAZA Enterprises (Aircon/Refrigeration)                      S$    2,000
5) Exploid Technologies (RFID Installation)                         S$    1,000
6) Impac Advertising (Advertising)                                         S$    1,000
                                                                                                                  S$  23,000


RUNNING COST:-
Cost Calculation for 1 year:
No. of workers working in a Minimart = 10 persons
SALARIES [10 persons]:
Supervisor (1 person@2500/month)          = S$ 2,500
Cashiers (3 persons@1500/month)            = S$ 4,500
Sales Assistant (3 persons@1200/month) = S$ 3,600
Store Keeper (3 persons@1200/month)    = S$ 3,600
                                                                                      S$ 14,200

 Salaries of 10 workers for 12 months (14200 x 12)  = S$ 170,400   
 Additional cost of goods purchased                             = S$   50,000    
 Rental for 12 months (12 x 3500)                                    = S$   42,000    
  Human Resource                                                                  = S$   10,000                                     
  Net Total                                                                                     S$ 272,400      


Total Cost after 1 year 4 months = (170,400 + 272,400)    = S$    442,800       
 Total Annual Revenue collected (3,000 x 365 days)         = S$ 1,095,000

ROI:
  = (Gain – Cost) / Cost  
  = (1095000 – 442800) / 442800 
  = 1.47   
  = 147%                                                                                                                                                                                     
Hence, ROI > 0.5.

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