As before, salary and rental would form a significant portion of the operating expenditure. Utilities, transportation,...

 

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As before, salary and rental would form a significant portion of the operating expenditure. Utilities, transportation, equipment repair, general maintenance and miscellaneous expenses are tabulated in TABLE 4. TABLE 4: Estimated Monthly EPSB New Business Expenses Cost Item Shop Rental Utilities & Transportation Repair & Maintenance IT Services Staff Salary Owner Salary Miscellaneous (tax, legal etc.) Descriptions RM2000 per month for 3 years. 3% of total revenue RM500 per month for 3 years RM300 per month for 3 years RM100 per day for 22 per month for 6 persons in 2021 and increase by 5% every year onward RM200 per day for 22 per month for 1 person in 2021 and increase by 5% every year onward RM1000 The company needs to prepare the sensitivity analysis in fluctuation of direct cost following margin fluctuation from 50% to 70%. Preparation of Business Expansion Brief The company needs your assistance in preparing a business brief to highlight the health of the business and the merit to expand business venture. For the case study provided, you are expected to study and prepare a project brief that must include (but not limited to) the following steps of economic analysis: 1. Summary of project design requirement and constraints. 2. List and discuss project completion alternatives and cost impact. 3. State assumptions and project constraints. 4. Tabulate all costs and benefits expected. 5. Report on comparative analysis of potential options available 6. Identify critical factors that can influence decision through sensitivity analysis 7. Provide recommendation of the most attractive options and indicate potential areas of concern. As before, salary and rental would form a significant portion of the operating expenditure. Utilities, transportation, equipment repair, general maintenance and miscellaneous expenses are tabulated in TABLE 4. TABLE 4: Estimated Monthly EPSB New Business Expenses Cost Item Shop Rental Utilities & Transportation Repair & Maintenance IT Services Staff Salary Owner Salary Miscellaneous (tax, legal etc.) Descriptions RM2000 per month for 3 years. 3% of total revenue RM500 per month for 3 years RM300 per month for 3 years RM100 per day for 22 per month for 6 persons in 2021 and increase by 5% every year onward RM200 per day for 22 per month for 1 person in 2021 and increase by 5% every year onward RM1000 The company needs to prepare the sensitivity analysis in fluctuation of direct cost following margin fluctuation from 50% to 70%. Preparation of Business Expansion Brief The company needs your assistance in preparing a business brief to highlight the health of the business and the merit to expand business venture. For the case study provided, you are expected to study and prepare a project brief that must include (but not limited to) the following steps of economic analysis: 1. Summary of project design requirement and constraints. 2. List and discuss project completion alternatives and cost impact. 3. State assumptions and project constraints. 4. Tabulate all costs and benefits expected. 5. Report on comparative analysis of potential options available 6. Identify critical factors that can influence decision through sensitivity analysis 7. Provide recommendation of the most attractive options and indicate potential areas of concern.

Answer rating: 100% (QA)

The project brief should provide a comprehensive overview of the economic implications of the proposed business expansion for the company It should in... View the full answer