Question

he foowngndmarion apyis no ha gesians dilsnae ow ou ls & consult ng rm that works with manage to impro C their interpersona sklis reported the following costs and revenues during the paz: year ocently ao presentat o ora high cch rescerch firm approached B丫ou s awner w h an offer to correct or one year au to l pro e the l crpcrzana sk s ara now hirad manager ou drruol nceme Stotement 24250D 14,000 Equiament lcese Supplies Toial cast Operanng prott lo S 236,00 lf You dec dcs totake tnc contract o hc P tne manager, t wil hire offices will be necessory for this work ful tme consuts et $81 0. quip en cesc crease by 5 pe cem Sup ics wi inc case oy an cerma cd ⑩ percent and dr er ccats by 15 percent ne co sting building has space for no new cons u ant O new Required anormanon 4.16 points Required: a. Vahat are the difterential costs that would ba Incurred as a result ot taking the contract? Tulal cus

Answer 1

* Requirement 'a'

Consultant's salary [Officers salary]	$                84,500
Equipment lease [16600 x 5%]	$                      830
Supplies [11800 x 10%]	$                   1,180
Other costs [8700 x 15%]	$                   1,305
Total [Differential] Costs	$                87,815