Nominate a Percentage for Profit for this Business Scenario - Management Assignment Help

Assignment Task:

Task:

Background; You are the principal of a residential housing company which builds a uniquely designed home. Your company tenders against other home builders for various clients. You forecast that your company will build 38 new homes in the coming year. All the houses will be built on your clients land, for both, new builds & demolish and re-builds. 
It is estimated that 12 of the homes will require demolition of an existing house, the other 26 will be built on vacant land. 
You spend all of your time managing and promoting the business. You hire labourers, supervisors and other office staff, all of which work directly for you. 
All trade work is sub-contracted. 
TASK: Using a clear process, you are to answer the following 5 questions relating to the scenario above. 
(i) 
Using the Fixed Overheads handout supplied (as a template), prepare a list of items and estimated costs of fixed overheads for your company for the year.. 
(ii) For each project type (new builds & knock down / re-builds) you need to list the required items and calculate the cost of preliminaries. DO NOT include items, which were previously used as fixed overheads. Remember, all trade work is sub-contracted. 
(iii) Using the figures from above, calculate a percentage for fixed overheads (iv) Nominate a percentage for profit for this business scenario. (v) Provide an explanation for the profit percentage you have chosen. (vi) 
Calculate a final tender figure (per house) for both project types;

(i) demolish & re-build &

(ii) new 
house only. 
NOTES: Vacant land average size is 580m2 Existing house land size 650m2 containing asbestos clad house 120m2 The estimated cost of construction (variable overheads), not including preliminaries or demolition is $360,000 per house. 
 

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