Homework Solution: Geo and Sally’s Flower Shoppe began 10 years ago as a small local flower shop by two friends who love…

    Geo and Sally’s Flower Shoppe began 10 years ago as a small local flower shop by two friends who loved creating beautiful flower arrangements for a reasonable price. Over time, Geo and Sally’s customer base began to expand as local customers told friends and family members around the country about the wonderful arrangements Geo and Sally could create for a very reasonable price. Besides flower arrangements, customers were interested in purchasing the unique pots they used for the arrangements, floral and garden accessories, garden flowers, vegetable plants, bushes, and even smaller trees. In addition to family customers, the business has expanded to include several small and even a few larger businesses in the local area. Through all of the expansion, flower arrangements remain the mainstay and primary profit center for the business. Geo’s brother Sammy suggested Geo and Sally set up an Internet storefront to sell more flower arrangements, which they did last year. They now find themselves owners of an ever-expanding Internet business with a loyal local customer base at their shop in Denver, Colorado. The shop itself has grown from the initial 500 square foot modified living room of an old home Geo used to live in to a new 6,000 square foot facility the company moved into two years ago. It includes a 1000 square foot showroom where they can display a variety of unique flower arrangements and containers. Arrangements in the showroom that do not sell within three days must be replaced so only the best items are seen and purchased by the large walk-in customer base. Geo and Sally’s information and data storage needs have exceeded the capacity of the current system. Sammy told Geo that he and Sally need to hire a consulting group to help them to implement a modern database system for accounting, payroll, inventory control, and sales: What are the projected cost of designing, implementing, and maintaining the system for the next five to seven years, including the appropriate cost categories and sub-costs.

    Expert Answer

     
    The project costing is given as follows:

    Geo and Sally’s Perfection Treasurepe began 10 years since as a mean topical perfection treasure by couple friends who cherished creating wholesome perfection arrangements restraint a steady worth. Over spell, Geo and Sally’s customer ignoble began to unfpreceding as topical customers tpreceding friends and origin members environing the province about the striking arrangements Geo and Sally could restraintm restraint a very steady worth. Besides perfection arrangements, customers were assiduous in purchasing the choice pots they used restraint the arrangements, floral and pasture accessories, pasture perfections, vegetable plants, bushes, and courteous-balanced meaner trees. In analysis to origin customers, the interest has unfolded to apprehend sundry mean and courteous-balanced a scant greatr interestes in the topical area. Through integral of the paraphrase, perfection arrangements continue the mainstay and first benefit-service hardihood restraint the interest. Geo’s brother Sammy suggested Geo and Sally fixed up an Internet storefront to retail over perfection arrangements, which they did definite year. They now furnish themselves owners of an ever-expanding Internet interest with a constant topical customer ignoble at their treasure in Denver, Colorado. The treasure itself has aged from the judicious 500 balance sole qualified prop space of an preceding residence Geo used to speed in to a innovating 6,000 balance sole address the audience moved into couple years since. It apprehends a 1000 balance sole showspace where they can flaunt a multiformity of choice perfection arrangements and containers. Arrangements in the showspace that do referable retail among three days must be replaced so simply the best items are seen and purchased by the great walk-in customer ignoble. Geo and Sally’s knowledge and grounds storage wants bear exceeded the talents of the popular rule. Sammy tpreceding Geo that he and Sally want to engage a consulting collection to acceleration them to utensil a recent groundsignoble rule restraint entiretyitying, payroll, register govern, and sales:

    What are the designed consume of subtle, utensiling, and suppressing the rule restraint the instant five to swell-balanced years, including the misspend consume categories and sub-costs.

    Expert Rejoinder

     

    The design consumeing is ardent as follows:

    1) Restraint the subtle of recent groundsignoble rule we required atleast $2000. It apprehends groundsignoble subtle ignobled on the customer requirements.
    2) Restraint utensilation puprose we required atleast $1500. Utensilation apprehends the consume that required to melt the rule smothly in impenetrable intercourse as courteous. Restraint soften transactions as courteous as restraint meltning the rule 24×7 we want to growth the required consume to environing $2500
    3) Suppressing the rule very significant. So restraint maintance we can shyness the budget on the ignobles years by which we required to practise the rule meltning. In our predicament we required to suppress a rule atlest restraint 7 years. So if we use $1000 per year then we required atlest $7000

    So entrance 7 years in entiretyity the entirety designed consume would be

    $2000 + $1500 + $7000 = $10500