cuarrer 3/FuLL Cost
Annual Cost fot Three Pieces of Construction Equipment
Dump
Grader Track
Contracted operating hours 10003200
Variable cost [per opezating hour!
si250 $1075
237
“Total variable cost per hour
Fixed cost attributable to
equipment:
‘Total attributable fixed cost
Annual indirect (fixed) cost forall
‘equipment:
Scheduling & dispatching
Contract administration
Supervision
Garage rental
(Office & administration
‘Total indirect cost
ber of hours fll considerably short of what Alexander Brothers had contracted fs
CRA demanded compensation. However, before any further discussion took place
CRA had to quantify its loss.
Required:
1, Reconstruct the total value of the contract. Then determine the billing rate
pet hour of operation for each of the three picces of equipment.
2, Assume CRAs agreement stipulates that if Alexander Brothers doesn’t ful
the contract, Alexander Brothers is responsible only to the extent ofits actus
losses, including lost profit. What is CRAs actual loss?
3.1 (Homestead Family Clinic)
Part A.
Bethany (Beth) Brauner grew up in Miami during the 1960s. When many of her
friends shed their bell-hottom jeans and lovebeads for power suits and dresses, Bet
held steadfast in her deep personal commitment to helping those who could no=
help themselves. During summer vacations, for example, Beth chose to work with
‘grassroots community health organizations. When it came time to select a major
at college, she chose health care administration, At graduation, she took a low-
paying job in Miami's fledgling Homestead Free Clinic, whose mission was to pro-
‘vide family planning and pregnancy counseling services. With an annual operating:
budget of less than $200,000, the clinic was supported by grants and funding fromcuarren 3/FuLL cost 165
Severament agencies, Its clients were mainly poverty-level families and migrant
Sesnworkers, Its fees for service were based on clients’ ability to pay.
‘Today, Beth runs the Homestead Family Clinic (the “Family Clinic”), which