the law firm of taylor and tower has been asked
the law firm of taylor and tower has been asked to represent a local client. all legal proceedings will be held out of town in washington, d.c.required the law firm's accountant has asked you to help determine the incremental cost of accepting this client. classify each of the following items on the basis of their relationship to this engagement. items may have multiple classifications.relevant costs irrelevant costs opportunity outlay outlay sunkl. the case will require three attorneys to stay four nights in a washington hotel. the predicted hotel bill is $2,400.2. taylor, taylor, and tower's professional staff is paid $2,000 per day for out-of-town tasks.3. last year, depreciation on taylor, taylor, and tower's office was $12,000.4. round-nip transportation to washington is expected to cost $250 per person. 5. the firm has recently accepted an engagement that will require partners to spend two weeks in atlanta. the predicted out-of-pocket costs of this trip are $8,500. 6. the firm has a maintenance contract on its computer equipment that will cost $2,200 next year. 7. if the firm accepts the client and sends attorneys to washington, it will have to decline a conflicting engagement in hilton head that would have provided a net cash inflow of $15,000.8. the firm's variable overhead is $80 per client hour. 9. the firm pays $250 per year for mr. tower's subscription to a law journal.10. last year the firm paid $3,500 to increase theˇ insulation in its building.
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