Henderson Designs provides basic interior design services in a small town in the Rocky Mountain area....

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Henderson Designs provides basic interior design services in a small town in the Rocky Mountain area. Lately, the growth in the business has slowed considerably and the managers have been looking at new services that might improve their prospects. The sales manager has suggested that adding some landscape design services would be a nice complement to their existing offerings. The manager put the analysis together and then suddenly quit. You have been asked to reconstruct the analysis. The last known spreadsheet with the analysis is shown as follows. You recall that, in the last meeting, the sales manager estimated that Henderson would probably have to hire some additional employees to do the extra work. The analysis included an estimate that the new service would add about $21,750 to the annual labor costs. Required: Complete the below table by filling in the blank cells. Note: Enter all amounts as positive values. Sales revenue Costs Equipment lease Labor Rent Depreciation Utilities Other Total costs Operating profit Henderson Designs Projected Income Statement For the Year Status Quo: Current Services $ 102,000 $ 22.000 57,000 22.000 97,500 % Increase (Decrease) Alternative: Enhanced Services %$ 468,600 10% $ 112,200 % 94,250 20 % 21,000 5% Difference $ 10,200 24,900 Henderson Designs provides basic interior design services in a small town in the Rocky Mountain area. Lately, the growth in the business has slowed considerably and the managers have been looking at new services that might improve their prospects. The sales manager has suggested that adding some landscape design services would be a nice complement to their existing offerings. The manager put the analysis together and then suddenly quit. You have been asked to reconstruct the analysis. The last known spreadsheet with the analysis is shown as follows. You recall that, in the last meeting, the sales manager estimated that Henderson would probably have to hire some additional employees to do the extra work. The analysis included an estimate that the new service would add about $21,750 to the annual labor costs. Required: Complete the below table by filling in the blank cells. Note: Enter all amounts as positive values. Sales revenue Costs Equipment lease Labor Rent Depreciation Utilities Other Total costs Operating profit Henderson Designs Projected Income Statement For the Year Status Quo: Current Services $ 102,000 $ 22.000 57,000 22.000 97,500 % Increase (Decrease) Alternative: Enhanced Services %$ 468,600 10% $ 112,200 % 94,250 20 % 21,000 5% Difference $ 10,200 24,900

Answer rating: 100% (QA)

For Sales revenue The alternative enhanced services show an increase in sales revenue by 468600 For Costs 1 Equipment lease This remains the same at 1... View the full answer