Manage Your Health, Inc. (MYH) is listed in the Fortune 500 Company that provides a variety...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Manage Your Health, Inc. (MYH) is listed in the Fortune 500 Company that provides a variety of healthcare service across the globe. They have 20,000 full-time and 9,000 part-time employees. A study found that MYH, Inc. pays 45% more than the industry average for their employee healthcare premiums, due to the poor health of its employees. Therefore, the company has planned to provide a web application that provides online functionalities to help their employees enrol and manage their health-managem ent and recreational programs. This application will have the following capabilities. Allow employees to register for company-sponsored recreational programs such as soccer, netball, bowling, jogging and walking etc. • Allow employees to register for company-sponsored classes and programs to help them manage their weight, reduce stress, and stop smoking etc. • Track employees' involvement in these recreational and health-managem ent programs • Over incentives for people to join the programs and do well in them Project's financial information The project is expected to cost the company $1150,000 for the web application development and $750,000 for web and database servers. The project is expected to take 6 months to complete. They believe that this application will help improve their employees' health after a year of its rollout so that the company can negotiate lower healthy insurance premiums, providing a net saving of at $500 per employee per year for full- time employees and $250 per employee per year for part-time employees over next five years. The company does not expect any savings in employee healthcare premiums for the first two years when the application will be up and running. A yearly budget of $350,000 has been set aside for the next five years for system maintenance. A new role "Application Support Engineer" has been created with the responsibility to work with the software engineering team to develop the application and to provide on-going application support after the roll out of the application. This role will cost the company $100,000 with a 6% yearly increase in the annual salary. Assume that the discount rate is 7%. Task 2: Project cost control (25 marks) You are required to control the budget for the above MYH's project. 2.1 What is the total budget at completion (BAC) for the project? (3 marks) 2.2 Assume that the work for the first month is completed in the project. The following information has been provided as a result of work done so far. Plan Value (PV) Eamed Value (EV) = $150, 000 Actual Cost (AC) = $200, 000 = $220, 000 Answer the following questions 2.2.1 - 2.2.5 (must slhow all the workinug). 2.2.1 Explain a likely reason for the difference between PV and AC for the first month of this project. (4 marks) 2.2.2 Calculate the cost variance (CV) and the cost performance index (CPI) for the first month in this project? Is the project under or over budget? (6 marks) 2.2.3 Calculate the schedule variance (SV) and the schedule performance index (SPI) for the first month in this project? Is the project ahead of or behind schedule? (6 marks) 2.2.4 Calculate the new estimate at completion (EAC) for this project after the completion of first month's work. (3 marks) 2.2.5 Calcuate how long it will now take to finish this project after working on the project for a month. (3 marks) Manage Your Health, Inc. (MYH) is listed in the Fortune 500 Company that provides a variety of healthcare service across the globe. They have 20,000 full-time and 9,000 part-time employees. A study found that MYH, Inc. pays 45% more than the industry average for their employee healthcare premiums, due to the poor health of its employees. Therefore, the company has planned to provide a web application that provides online functionalities to help their employees enrol and manage their health-managem ent and recreational programs. This application will have the following capabilities. Allow employees to register for company-sponsored recreational programs such as soccer, netball, bowling, jogging and walking etc. • Allow employees to register for company-sponsored classes and programs to help them manage their weight, reduce stress, and stop smoking etc. • Track employees' involvement in these recreational and health-managem ent programs • Over incentives for people to join the programs and do well in them Project's financial information The project is expected to cost the company $1150,000 for the web application development and $750,000 for web and database servers. The project is expected to take 6 months to complete. They believe that this application will help improve their employees' health after a year of its rollout so that the company can negotiate lower healthy insurance premiums, providing a net saving of at $500 per employee per year for full- time employees and $250 per employee per year for part-time employees over next five years. The company does not expect any savings in employee healthcare premiums for the first two years when the application will be up and running. A yearly budget of $350,000 has been set aside for the next five years for system maintenance. A new role "Application Support Engineer" has been created with the responsibility to work with the software engineering team to develop the application and to provide on-going application support after the roll out of the application. This role will cost the company $100,000 with a 6% yearly increase in the annual salary. Assume that the discount rate is 7%. Task 2: Project cost control (25 marks) You are required to control the budget for the above MYH's project. 2.1 What is the total budget at completion (BAC) for the project? (3 marks) 2.2 Assume that the work for the first month is completed in the project. The following information has been provided as a result of work done so far. Plan Value (PV) Eamed Value (EV) = $150, 000 Actual Cost (AC) = $200, 000 = $220, 000 Answer the following questions 2.2.1 - 2.2.5 (must slhow all the workinug). 2.2.1 Explain a likely reason for the difference between PV and AC for the first month of this project. (4 marks) 2.2.2 Calculate the cost variance (CV) and the cost performance index (CPI) for the first month in this project? Is the project under or over budget? (6 marks) 2.2.3 Calculate the schedule variance (SV) and the schedule performance index (SPI) for the first month in this project? Is the project ahead of or behind schedule? (6 marks) 2.2.4 Calculate the new estimate at completion (EAC) for this project after the completion of first month's work. (3 marks) 2.2.5 Calcuate how long it will now take to finish this project after working on the project for a month. (3 marks)
Expert Answer:
Answer rating: 100% (QA)
The MYH company has 20000 fulltime employees and 9000 parttime employees The benefit from reduction ... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
1-1. Simulate the widths fo 5000shims from a production line that are punched from stock nominally 3 mm thick but which varies uniformly width by +-(plus minus)0.005mm. Plot a histogram of the shim...
-
Senior management at Manages Your Health, Inc. (MYH) decided that it would be best to outsource employee training on the Recreation and Wellness system, which will be rolled out soon. MYH also wants...
-
Prepare a reflective analysis based on your observation and its links with consumer behaviour theories covered in weeks 1 to 4. Refection requires you to observe, describe and make meaning of...
-
Use the test of your choice to determine whether the following series converge. 1 1! + 4 2! + 9 16 + 3! 4!
-
Solve the linear system in Exercise 16(b) of Exercise Set 7.3 using the conjugate gradient method with C1 = I.
-
A $1,000 par bond with an annual coupon has only one year until maturity. Its current yield is 7.621% and its yield to maturity is 12%. What is the price of the bond?
-
A distillation tower with sieve trays is to separate benzene from mono-chlorobenzene. Conditions at a plate near the bottom of the column are: Vapor Phase Mass flow rate \(=24,850 \mathrm{lb} /...
-
Ziege Systems is considering the following independent projects for the coming year: Zieges WACC is 10%, but it adjusts for risk by adding 2% to the WACC for high-risk projects and subtracting 2% for...
-
Which segments of the streaming and television industry (hardware (e.g. Roku), broadcast networks (CBS, NBC), streamers (Netflix, Paramount , Disney ), cable channels (ESPN), content producers...
-
Work these problems relating to after-tax cash flow (ATCF) computations: 1. Compute the present value after-tax cost ("PVATC") of a $9,500,000 purchase of equipment on January 1 that your corporate...
-
In the following article, Christopher Nobes suggests that there are several reasons for the differences in accounting systems throughout the world. Read the article and write a report on the...
-
What are the four key characteristics essential to an effective guiding coalition?
-
Hancock Brothers, another Wall Street investment bank, engaged in so-called "Repo 105 transactions," by which Hancock was able to move liabilities off its balance sheet at the end of each quarter...
-
Jack owns a cafe in Ultimo. Last week Jack purchased a 'Coffee-2000' espresso machine for $75,000 from Coffee Co Pty Ltd to use in his business. The machine seemed perfect for Jack's cafe, with the...
-
(1) Which of the following salts is the strongest base? (a) NaCIO4 (b) KCIO3 (d) KCIO (2) Which of the following salts would raise the pH of a solution when added? (a) KBr (b) KNO (c) NH4Cl (4) The...
-
4. Given an unlimited supply of coins of denominations 21,...,n (each are positive integers). We want to make change for some value v (also a positive integer), so we want to find a set of coins...
-
Assume the ductwork insulation repairs cost $1000. Change the duct sizing input to reflect a change from 12% heat gain and losses to 5% heat gain and loses. What is the simple payback for this? If...
-
Economic feasibility is an important guideline in designing cost accounting systems. Do you agree? Explain.
-
A professor wonders if the number of hours students spend studying during the week before final exams is a function of their GPAs until that point. Ten students in four separate GPA brackets report...
-
A clinical psychologist is studying whether scheduling clients for appointments prior to their workday or after their workday results in a better rate of showing up for their appointments. He...
-
Exercise 2 in Module 3 gave the following number of classes each of 32 students missed during the semester for a class meeting on M-W-F. Find the (a) Mode, (b) median (by formula), and (c) mean for...
-
While the BohrSommerfeld condition sometimes gets the energy eigenvalues exactly correct, it can also be used for systems where the exact solution is not known. In this example, we will estimate the...
-
It's useful to see how our quantum perturbation theory works in a case that we can solve exactly. Let's consider a two-state system in which the Hamiltonian is...
-
Let's see how the variational method works in another application. Let's assume we didn't know the ground-state energy of the quantum harmonic oscillator and use the variational method to determine...
Study smarter with the SolutionInn App