1. Superior Piping Company recently received a contract to install 500,000 feet of new piping in Premier’s Nashville manufacturing facility. Its original labor cost budget for this one-year contract was $3,500,000. Due to its workload when it sold the contract, it planned to use its current employees, who average $50,000 compensation per year. However, in the meantime it has secured some other contracts on which it needs to put some of its current workers. Now, Superior plans to produce 25% of the needed work with workers from outside the company. Although it will have to pay the new workers the same rate as its current workers, it anticipates that the new workers will be 15% less productive than the ones it already employs. If you assume all workers begin on the first day of the project, what should be Superior’s new labor budget for this project? Please solve with excel. Group of answer choices a. $3,700,000 b. $3,600,000 c. $3,650,000 d. $3,550,000
1. Superior Piping Company recently received a contract to install 500,000 feet of new piping in Premier’s Nashville manufacturing facility. Its original labor cost budget for this one-year contract was $3,500,000. Due to its workload when it sold the contract, it planned to use its current employees, who average $50,000 compensation per year. However, in the meantime it has secured some other contracts on which it needs to put some of its current workers. Now, Superior plans to produce 25% of the needed work with workers from outside the company. Although it will have to pay the new workers the same rate as its current workers, it anticipates that the new workers will be 15% less productive than the ones it already employs. If you assume all workers begin on the first day of the project, what should be Superior’s new labor budget for this project? Please solve with excel. Group of answer choices a. $3,700,000 b. $3,600,000 c. $3,650,000 d. $3,550,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
1. Superior Piping Company recently received a contract to install 500,000 feet of new piping in Premier’s Nashville manufacturing facility. Its original labor cost budget for this one-year contract was $3,500,000. Due to its workload when it sold the contract, it planned to use its current employees, who average $50,000 compensation per year. However, in the meantime it has secured some other contracts on which it needs to put some of its current workers. Now, Superior plans to produce 25% of the needed work with workers from outside the company. Although it will have to pay the new workers the same rate as its current workers, it anticipates that the new workers will be 15% less productive than the ones it already employs. If you assume all workers begin on the first day of the project, what should be Superior’s new labor budget for this project? Please solve with excel.
Group of answer choices
a. $3,700,000
b. $3,600,000
c. $3,650,000
d. $3,550,000
Expert Solution
Step 1 - Answer
Correct option:
c. $3,650,000
Incorrect options:
a. $3,700,000
b. $3,600,000
d. $3,550,000
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