Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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- Suppose you are a project manager of a power plant project and there is a penalty in your contract with the main client for every day you deliver the project late. You need to decide which sub-contractor is appropriate for your projects critical path activities. But while selecting a sub-contractor, you should take into consideration the costs and delivery dates. • Sub-contractor A bids 200,000 OMR. You estimate that there is a 35% possibility of completing 50 days late. As per your contract with the client, you must pay a delay penalty of 4,500 OMR per calendar day for every day you deliver late.• Sub-contractor B bids 260,000 OMR. You estimate that there is a 13% possibility of completing 15 days late. As per your contract with the client, you must pay a delay penalty of 4,500 OMR per calendar day for every day you deliver late. Determine which sub-contractor is appropriate for your projects critical path activities. Both sub- contractors promise successful delivery and high-quality…arrow_forwardThe options presented to CGC are the following: (Select all that Apply) A. Engage in a relatively modest renovation of the property. B. Undertake a major renovation of the casino to transform it from a second-tier operation into one of the top gambling operations in the area. C. Invest in a newer casino in Gulf Shores, AL. D. Do nothing. E. Shut down the operations of the casino entirely. F. Shut down the operations of the casino and move to another area of the country that allows casinos but which is less prone to hurricane damage.arrow_forwardif julio ruiz has an income of $25,00, pays $6000 in rent, $1200, in utiliteis, and $5000 in taxes per year, his disposable income isarrow_forward
- If Mr. White proceeds with the manufacturing expansion he feels he will need to alter the current compensation package for his sales team in order to make sure Cottage Living can sell the additional units at market price. In an attempt to retain talented salespeople he has previously offered a very competitive yearly salary of $70,000 plus benefits and 4 weeks paid vacation. This pay structure has worked well in the past to attract loyal employees and to create a positive work environment at Cottage Living. There are currently 5 permanent salespeople. However, given how strong demand in 2019 and 2020 for Cottage Living products has been Mr. White feels that his sales team has been lacking motivation. They have also been taking their vacations during high demand months from May-August (he is not interested in dictating when people take their vacation). He is worried that if there is an increase in Cottage Living’s inventory, the poor sales habits that his team has picked up during the…arrow_forwardDevelop a fair procedure that will be used to determine merit raises and then decide the dollar raise to be given to each professor. provide not only the dollar amount of the raises, but also explain the process fordetermining raises and the rationale behind them.SituationSmall State University is located in the eastern part of the United States and has anenrollment of about 8,000 students. The College of Business has 40 full-time and morethan 30 part-time faculty members. The college is divided into five departments:Management, Marketing, Finance and Accounting, Decision Sciences, and InformationTechnology. Faculty members in the Management Department are evaluated each yearbased on three primary criteria: 1) teaching, 2) research, and 3) service. Teachingperformance is based on student course evaluations over a two-year period. Service tothe university, college, profession, and community is also based on accomplishmentsover a two-year period. Research is based on the number of…arrow_forward1.What is the point at which an owner can begin to occupy a building or use it for its intended purpose? At the end of the warranty period After final completion When the payment bond is terminated After substantial completion 2.What is used to determine periodic payment amounts on unit price contracts? Submitted invoices, receipts, and timesheets plus the contractor's fee. A fixed, monthly installment negotiated at the start of the project. Schedule of Values and percentage completion on each pay item Unit prices originally bid and quantities measured.arrow_forward
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