In 2013, several data server companies

In 2013, several data server companies took a dramatic decision to begin using energy surcharges to recapture rising energy costs. However, customers are critical of how the energy surcharges are being allocated. Specifically, the data server companies allocate costs based on bandwidth available to customers. Customers however prefer allocations to be based on actual usage metrics such as data-bytes transferred or data-stored in servers. The US Department of Energy has hired your team to provide a recommendation on the allocation. How would you allocate and provide an illustrative example

[0.5 page limit]

WRITE THIS ESSAY FOR ME

Tell us about your assignment and we will find the best writer for your paper.

Get Help Now!

2. One of the super-quants on your team was able to adapt the learning curve formula to predict the failure rate of servers in the server farm.

F(x) = Ae^(Gx)  8.8e^(0.08(10x)
F(x) = number of failures in a population of 100,000 servers of age x
A = Initial mortality rate
G = Exponential rate of increase mortality for an increase in age x
e = Mathematical expression (Function EXP in excel) which approximates 2.71828…

Based on the equation above derive failure rate from age 2.5 to 9.0 years.

Assume the average server costs $100,000 and the average age of your server farm is 7 years. Your ops team suggest that they are reducing the average failure rate of your server farm from 4% to 1% in order to service enterprise customers – what would this mean to your cost basis?

[0.5 page limit]

3.

Read “One Number to Manage Your SaaS Sales &Marketing Spend: The CAC ratio” – by Bessemer Ventures

Read “The unprofitable SaaS business model trap” – by Jason Cohen

Review Workday’s non-GAAP financial data and answer the key questions below

Calculate:
i. CAC ratio for Workday for year ended JAN 31, 2013.
ii. Compare Workday’s performance against Cohen’s analysis below:

Say the average customer represents R dollars in annual revenue. That’s:

iii. What in Workday’s cost structure do you think is driving Workday’s stock performance?

 $4R of revenue over the lifetime of the customer. But:
 $1.5R is spent to acquire the customer (the pay-back period).
 $1.2R is spent in gross margin to service the customer (4 years times 30% cost).  $0.6R spent on R&D (15% over 4 years).
 $0.6R spent on Admin (15% over 4 years).

So out of the original $4R, we’re left with $0.1R in profit. That’s 1/40th of the revenue making its way to actual bottom-line profitability, and even that takes 4 years to achieve.

[ 3 page limit]

4. Review FY 2012 results for ITT Educational Services.

Calculate break-even point based on number of student enrollments based on 2012 results. Show all of the exclusions and assumptions made (e.g. exclusion of non-cash charges, revenue per student etc.)

[1.5 page limit]

5. Review the article Idle Capacity Costs: It Isn’t Just the Expense.

•   Explain the authors’ statement: “Under an accounting system that assigns excess capacity costs to current production and an incentive system that rewards short-term decision making, companies produce more vehicles than they can sell.”
•   How does the authors’ proposal for additional disclosure reconcile GAAP vs. Non-GAAP [1.5 page limit]

Not ready? We are here to write this paper from scratch.
Place an order for this assignment or any other paper with us. We guarantee that the paper will be delivered within the specified deadline. We also have a personalized customer support and you will be able to communicate with your writer throughout the order preparation process. Thank you for choosing us.