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The table below presents a cost estimate WBS submitted with a proposal to develop a...

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Accounting

imageimage The table below presents a cost estimate WBS submitted with a proposal to develop a surface water drainage plan for a new water treatment plant. Complete the following exercises regarding the anticipated financial performance of the project. Turn in printouts (neat and well organized) of your work. 1. The annual salaries of the proposed staff for this task are provided below. Develop a spreadsheet that calculates the labor price (PL), direct cost of labor (DCL), burdened cost of labor (BCL), overhead cost (OH), and profit ( $ and \%) that will report to the project for each individual and for the project as a whole (e.g. include a column for totals for each employee). Assume an Overhead Multiplier of 1.85 ? (12 points) 2. For the analysis in Question 1, assume a Direct Labor Multiplier of 3.2 and calculate a. The target profit margin (\%) for your firm (2 points) b. An 'ideal' salary will have the firm's target profit margin built in, although in reality and as shown in Question 1, the actual profit margin built into each employee's salary will be variable. Calculate the ideal salary that each of the proposed staff should have to ensure that the project meets the target profit margin for the labor component of the project. (6 points)

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