Looking back to the breakeven Table 6.1, how can the contractor increase its profit percentage by reducing
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Looking back to the breakeven Table 6.1, how can the contractor increase its profit percentage by reducing volume?
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Table 6.1 Breakeven analysis Ideal Revenue Breakeven Revenue Without Profit Construction Stepped Cost Fixed OH Variable Variable OH % HOOH $50,000 $50,000 $0 $50,000 2.0% $156,000 $152,000 $100,000 $50,000 2.0% $630,000 $610,000 $500,000 $100,000 2.0% $1,160,000 $1,120,000 $100,000 2.0% $1,000,000 $2,220,000 $2,140,000 $2,000,000 $100,000 2.0% $10,850,000 $10,450,000 $10,000,000 $250,000 2.0% $53,650,000 $51,650,000 $50,000,000 $650,000 2.0% $107,000,000 $103,000,000 $100,000,000 $1,000,000 2.0% $532,000,000 $512,000,000 $500,000,000 $2,000,000 2.0% $1,063,000,000 $1,023,000,000 $1,000,000,000 $3,000,000 2.0% Total HOOH Total HOOH % of Cost $50,000 $52,000 52.0% $110,000 22.0% $120,000 12.0% $140,000 7.0% $0 $2,000 $10,000 $20,000 $40,000 $200,000 $450,000 4.5% $1,000,000 $1,650,000 3.3% $2,000,000 $3,000,000 3.0% $10,000,000 $12,000,000 2.4% $20,000,000 $23,000,000 2.3% Ideal Profit as Fee, or % of Cost OH&P 56.0% 4.0% 4.0% 4.0% 4.0% 26.0% 16.0% 4.0% 11.0% 4.0% 8.5% 4.0% 7.3% 4.0% 7.0% 4.0% 6.4% 4.0% 6.3% Ideal Net (Before Tax) Profit $0 $4,000 $20,000 $40,000 $80,000 $400,000 $2,000,000 $4,000,000 $20,000,000 $40,000,000
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Cost Accounting And Financial Management For Construction Project Managers
ISBN: 9781138550650
1st Edition
Authors: Len Holm
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