PLEASE HELP OPEN IMAGE PROVIDED ANSWER ALL PARTS PLZ After experiencing high costs in 2019, SES used value engineering to reduce the cost of selling solar heating systems. Managers
at SES want to evaluate whether value engineering has succeeded in reducing the selling cost per sale by the targeted 5% in
Read the requirements.
Requirements
Calculate the cost per sale in 2019 .
Calculate the cost per sale in 2020 .
Did SES achieve the target cost per sale in 2020? Explain.
What challenges might managers at SES encounter in achieving the target
cost and how might they overcome these challenges?
Data table
More info
A successful sale results in the homeowner purchasing a solar heating system and
obtaining rebates, tax credits, and financing for which SES completes all the
paperwork. The company has identified three major activities that drive the cost of
selling heating systems: identifying new contacts (varies with the number of
new contacts); traveling to and between appointments (varies with the number of
miles driven); and preparing and filing rebates and tax forms (varies with the
number of solar systems sold). Actual costs for each of these activities in 2019 and
2020 are shown below:
Sunny Energy Systems (SES) sells solar heating systems in residential areas of eastern Pennsylvania i) (Click the icon to view additional information.) Actual results for 2019 and 2020 for SES are: (Click the icon to view the actual results.)
After experiencing high costs in 2019, SES used value engineering to reduce the cost of selling solar heating systems. Managers at SES want to evaluate whether value engineering has succeeded in reducing the selling cost per sale by the targeted 5% in 2020
Read the requirements
Requirements
X
Requirement 1. Calculate the cost per sale in 2010
Determine the 2019 total costs in the first column and the cost per sale in the second column. (Round all calculations a 2019 total 2019 cost per costs sale Cost of new contacts Travel costs
Calculate the cost per sale in 2019. Calculate the cost per sale in 2020. Did SES achieve the target cost per sale in 2020? Explain. What challenges might managers at SES encounter in achieving the target cost and how might they oweroome these challenges?
Preparing and filing costs
Total
X
Requirement 2. Calculate the cost per sale in 2020.
Data table
Determine the 2020 total costs in the first column and the
2020 cost per 2020 total costs sale
Actual Results Actual Results for 2019 for 2020 150 180 220 245 1,900 1,800
Cost of new contacts Travel costs Preparing and filing costs
Sales of heating systems Number of new contacts
Miles driven
Total
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Requirement 3, Did SES achieve the target cost per sale in 2020? Explain, (Round your answer to the nearest cent.)
The target cost for 2020 is
A successful sale results in the homeowner purchasing a solar heating system and obtaining rebates, tax credits, and financing for which SES completes all the paperwork. The company has identified three major activities that drive the cost of
(Round applicable answers to the nearest cent.)
Did SES achieve the target cost per sale in 2020? Was the actual cost for 2020 higher or lower than the target cost for 2020? By how much?
new contacts); traveling to and between appointments (varies with the number of miles driven); and preparing and filing rebates and tax forms (varies with the number of solar systems sold). Actual costs for each of these activities in 2019 and 2020 are shown below:
Requirement 4. What challenges might managers at SES encounter in achieving the target cost and how might they overcome these challenges?
2019 2020 10.00 $ 8.00 0.45 0.70 250.00 240.00
Average cost per new contact Travel cost per mile Preparing and filing cost per new system
A. employee resistance to changes in processes B. customer resistance to reduced pricing
c. unexpected increases in the cost of supplies, fuel, eto.
D. new compliance requirements imposed from the federal and/or state governments that increase the effort required for each new system E.unexpected decreases in the cost of supplies, fuel, etc.
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