Statement of work cost estimation
The triple constraints for creating cost estimates include resources, time and money. What cost estimation approaches provide consistent triangulation of triple constraints for creating accurate estimates? Should different approaches be used for different types of projects?
For this Assignment, you will practice using WBS to analyse triple constraints to create a statement of work cost estimate for a seminar on cost estimating.
To prepare for this Assignment:
Create a spreadsheet to calculate your projected total costs, total revenues and total profits for giving a seminar on cost estimating. Make the following assumptions:
• You will charge $600 per person for a 2-day class.
• You estimate that 30 people will attend the class, but you want to change this input.
• Your fixed costs include $500 total to rent a room for both days, set-up fees of $400 for registration and $300 for designing a postcard for advertising.
• You will not include your labour costs for this estimate, but you estimate that you will spend at least 150 hours developing materials, managing the project and giving the actual class. You would like to know what your time is worth given different scenarios.
• You will order 5,000 postcards, of which you will mail 4,000 and distribute the rest to friends and colleagues.
Your variable costs include the following:
• $5 per person for registration plus four per cent of the class fee per person to handle credit card processing; assume that everyone pays by credit card
• $0.40 per postcard for printing if you order 5,000 or more
• $0.25 per postcard for mailing and postage
• $25 per person for beverages and lunch
• $30 per person for class handouts
Be sure to have input cells for any variables that might change, such as the cost of postage and handouts. Calculate your profits based on each of the following numbers of people who might attend: 10, 20, 30, 40, 50 and 60. In addition, calculate what your time would be worth per hour based on the number of students. Try to use the Excel data table feature to show the profits based on the number of students. If you are unfamiliar with data tables, just repeat the calculations for each possibility of 10, 20, 30, 40, 50 and 60 students.
To complete this Assignment:
Print your spreadsheet results on one page, highlighting the profits for each scenario and what your time is worth. Additionally, submit an analysis of your statement of work cost estimation findings focusing on the triple constraints of resources, time and money.
For all Assignments:
Your document should have 750-1,000 words (not including the list of works cited), but it is the quality of the answer that matters, not the number of words. Cite and reference all sources using the Harvard Liverpool Referencing System. By Day 7, upload your document using the Turnitin submission link for this Assignment.
Please follow the instructions. Referencing style is Harvard referencing and no plagiarism.