Question: Question 2 (10 Marks) A sub-contractor in a road construction project has offered to take over the remaining contract from the main contractor. They are

Question 2 (10 Marks) A sub-contractor in a road construction project

Question 2 (10 Marks) A sub-contractor in a road construction project has offered to take over the remaining contract from the main contractor. They are offering to take over all the jobs by paying a fee of 5% on all contract revenue that they will be collecting in the project. Some of the staff and offices will be manned by the sub-contractor's group and will reduce the main contractor's operation overheads by RM1,500,000 per month. The estimated contract value left in the project is RM120,000,000 with the total materials and direct labour costs estimated to be at RM102,000,000. The project will be completed within the next 6 months. Required : a) As the main contractor shoul your company accept the offer ? Show Calculation. ( 5 marks ) b) What the qualitative considerations to be taken into account in the decision? ( 5 marks )

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

A single-sample t test and Victorias Secret perfume as an insect repellent: Biology researchers examined the mosquitorepelling effects of a control (no scent), insect repellents that contain DEET,...

A subcontractor in a road construction project has offered to take over the remaining contract from the main contractor. They are offering to take over all jobs by paying a fee of 5% on all contract...

A sub - contractor in a road construction project has offered to take over the remaining contract from the main contractor. They are offering to take over all the jobs by paying a fee of 5 % on all...

Question 2 (10 marks) Antigone Contractors Pty Ltd is the head contractor for the construction of a $55 million high-rise apartment building on Frome Street, Adelaide. Antigone conducts a competitive...

Thank u guys:) This is the reference pages but the questions are the last 3 pictures . . . . Craft - Mason Wage rate VET $29.00 Hours worked 50 hours per week for 20 weeks and 40 hours per week for...

There is a case question (very last question) in the document below and i would like to know how to resolve it properly University of Toronto Faculty of Arts and Science and Rotman School of...

ECTION A [40 MARKS] Read the case study below and answer ALL the questions that follow. A4232 Eastern Bay Link, Cardiff, UK Roadway Project The NEC-procured Eastern Bay Link provides a vital new...

As a supervisor, would you be more inclined to promote your telecommuting or non-telecommuting subordinates, or would you be egalitarian? Why?

The adjusted trial balance of Kobe Repairs on December 31, 2011, follows. Required 1. Prepare an income statement and a statement of owners equity for the year 2011, and a classified balance sheet at...

Which o f the following i s the domain o f the function 9 - x 2 2 ? x - 3 - 3 x 3 x 3 x - 3 and x 3

A married taxpayer has taxable income of $47,361. You have calculated tax liability using the tax tables and using the tax rate schedules. What can you say about the two figures? a. Tax liability...

During 2016, Yang Corp. had the following two classes of stock issued and outstanding for the entire year: 87,547 shares of common stock, $1 par. 7,405 shares of 9% preferred stock, $35 par,...

Ellen Kelly Inc. had 49,000 shares of $.50 par common stock 14,000 shares of 5%, $20 par cumulative preferred stock and 24,000 shares of 5%, $10 par preferred stock convertible into 14,400 common...

On January 1, 2016, Xander Insurance Company granted 36,790 stock options to certain executives. The options are exercisable no sooner than December 31, 2019, and expire on January 1, 2020. Each...

Derive the mathematical expression that gives the heat transfer coefficient of a fluid that passes through the wall of a fluid with a diameter D in the plug-type (PF) flow conditions under constant...

Scenario 4.1 Garman observes a worker assembling peanut valves and records the data displayed in the table. Time (seconds) 21 25 30 Observations 15 12 12 Use the information in Scenario 4.1. What is...

4. What is meant by the following statement, What we take for granted in a social situation may actually prove to be mechanisms that govern how we evaluate and act in the situation?

6. What is meant by the following statement, the methods used to uncover (construct) reality guide our thinking and actions in relation to this reality?

1. Discuss the following statements: (a) A person who describes something, ignores something else. (b) Our description of something will always be different from the thing we describe. (c) Our social...