Question

Twain Services offers leadership training for local companies. It employs three levels of seminar leaders, based on experience, education, and management level being targeted: guru, mentor, and helper. When Twain bids on requests for seminars, it estimates the costs using a set of standardized billing rates. It then adds an estimate for travel, supplies, and so on (referred to as out-of-pocket costs). Next it applies a percentage to the total of seminar leader cost and out-of-pocket cost for general and administrative (G&A) expense. The estimates for each of these elements are shown below:

Guru cost (per hour)	$	900
Mentor cost (per hour)	$	600
Helper cost (per hour)	$	85
G&A factor		170	%

Required:

Marcus Foundries has asked Twain for a set of seminars for managers at several levels. The bidding manager at Twain estimates that the work will require 45 guru-hours, 180 mentor-hours, and 600 helper-hours. She estimates out-of-pocket costs to be $35,000. What is the estimated cost of the proposed seminars, based on these estimates?

Answer 1

Calculate estimated cost

Guru Cost (900*45)	40500
Mentor cost (600*180)	108000
Helper cost (600*85)	51000
G&A Factor (35000*1.7)	59500
Total estimated cost	259000