Documente Academic
Documente Profesional
Documente Cultură
Faculty of Management
Business Management 3rd year
Authors:
Piotr Bartenbach
Bartomiej Staszczyk
Dominik Wolski
ach
zczyk
ski
- Case Study
Exercise #1
Design
FTEs
FTE Cost
Direct Labor Cost
DLC Cost
Direct Materials
Direct Mat. Cost
Direct Labor Cost
Direct Labor Cost
2
32630.43
369600
116842.80
0
0.00
0
0.00
Installation Maintenance
7.2
4.6
117469.57
75050.00
117600
225000
37177.25
71129.95
369000
42000
202141.97
23008.03
1500
1200
125083.33
100066.67
Exercise #2
Total revenue
Expenses:
Plants, sod
Direct labor
Other materials, sup
Payroll and receptio
Purchasing, account
Vehicle depreciation
Equipment depreciat
IT systems depreciat
Office rent utilities
Nursery rent, utilit
TOTAL EXPENSES
Net profit (loss)
Profit margin
$0.00
$117,600.00
$5,400.00
$369,000.00
$225,000.00
$24,600.00
$123,000.00
$57,000.00
32%
$618,600.00
$201,400.00
25%
147650.00
14.55%
$24,369.57
14%
$83,930.43
10%
by
Instalation
$820,000.00
$369,000.00
$225,000.00
$24,600.00
$618,600.00
$201,400.00
25%
202141.97
-$741.97
0%
Exercise #3
FTE
Design
24369.6
14%
Instalation
83930.4
10%
-59842.8
-33%
164222.7
20%
Direct Materials
57000.0
32%
-742.0
0%
Direct Labor
57000.0
32%
76316.7
9%
Average
19631.7
11%
80932.0
10%
In our opinion, the most attractive service line is Installation, because it generates the
highest profits (except when calculating with overhead allocated by usage of direct
materials). However, margin-wise, this line is the least attractive. It is caused by high costs
that are generated by high level of usage of materials and labor. Taking into consideration
the fact, that clients often use maintenance services after using other services, it is hard to
take this line as the most financially attractive, because we don't know how it would be
profitable if we exclude clients of design and installation services.
highest profits (except when calculating with overhead allocated by usage of direct
materials). However, margin-wise, this line is the least attractive. It is caused by high costs
that are generated by high level of usage of materials and labor. Taking into consideration
the fact, that clients often use maintenance services after using other services, it is hard to
take this line as the most financially attractive, because we don't know how it would be
profitable if we exclude clients of design and installation services.
Exercise #4
FTE
Design
42369.6
21%
Instalation
165930.4
18%
-41842.8
-21%
246222.7
27%
Direct Materials
75000.0
38%
81258.0
9%
Direct Labor
75000.0
38%
158316.7
18%
Average
37631.7
19%
162932.0
18%
In our opinion Finnegan should expand both Design and Installation lines as in this industry,
the client usually first wants to have the garden designed and then installed. Maintenance is
usually the natural consequence of the previous services so they shouldn't focus on
developing it in a way that it would cause the other lines to grow less.
Total
13.8
Overhead
225150
712200
411000
2700
cation
Maintanace
Administration
$280,000.00
$0.00
$42,000.00
$115,200.00
$8,400.00
$165,600.00
$114,400.00
41%
FTE
Maintanace
$280,000.00
$42,000.00
$115,200.00
$8,400.00
$165,600.00
$114,400.00
41%
75050.00
$0.00
$29,400.00
$0.00
$49,000.00
$31,000.00
$28,000.00
$18,750.00
$14,000.00
$30,000.00
$25,000.00
$225,150.00
-$225,150.00
$39,350.00
14%
Direct Materials
Maintanace
$280,000.00
$42,000.00
$115,200.00
$8,400.00
$165,600.00
$114,400.00
41%
23008.03
$91,391.97
33%
Maintanace
39350.0
14%
43270.1
15%
91392.0
33%
14333.3
5%
47086.3
17%
147650.00 -$59,842.80
14.55%
-33%
Maintanace
67350.0
22%
71270.1
23%
119392.0
39%
42333.3
14%
75086.3
24%
$42,000.00
$115,200.00
$8,400.00
$618,600.00
$201,400.00
25%
37177.25
$165,600.00
$114,400.00
41%
71129.95
$164,222.75
20%
$43,270.05
15%
by
Instalation
$820,000.00
Direct Labor
Maintanace
$280,000.00
$369,000.00
$225,000.00
$24,600.00
$42,000.00
$115,200.00
$8,400.00
$618,600.00
$201,400.00
25%
125083.33
$76,316.67
9%
$165,600.00
$114,400.00
41%
100066.67
$14,333.33
5%