Your company is conducting individual career assessments. For each of these assessments you are to pay...
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Your company is conducting individual career assessments. For each of these assessments you are to pay licence fees, additionally labour cost apply. The variable costs per assessment are CHF 60 The fixed costs are labour cost of CHF 70000 on a yearly basis (40% of their capacity including social charges). Your company can perform up to 1600 assessments per year. The external company EVAL limited is offering to perform these assessments at a standard price per test. Including the licence fee the overall cost per assessment would be CHF 125. Please calculate the financial impact (change in operating profit for your company), if there is a negative profit please include the financial impact with a minus sign (-) for the following situations (enter whole numbers, without decimal places): A) Situation 1: You have excess capacity to conduct all yearly assessments. You can not reduce the working time of your employees and these are not be assigned to other tasks. What is the financial impact from outsourcing all assessments to EVAL? B) Situation 2: You have excess capacity to conduct all yearly assessments. You could reduce the working time of your employees by 80 % to reduce fixed costs. What is the financial impact from outsourcing all assessments to EVAL? C) Situation 3: You have excess capacity to conduct all yearly assessments. You can not reduce the working time of your employees. By re-assigning the employees to other tasks your company could generate an additional contribution mar- gin of CHF 90000. What is the financial impact from outsourcing all assessments to EVAL? D) Situation 4: You have not sufficient capacity to conduct all yearly assessments. To increase your capacity there would thus be annual fixed costs in the amount described above in the initial situation. What is the financial impact from outsourcing all assessments to EVAL (in this case there is no increase of capacity necessary)?| Your company is conducting individual career assessments. For each of these assessments you are to pay licence fees, additionally labour cost apply. The variable costs per assessment are CHF 60 The fixed costs are labour cost of CHF 70000 on a yearly basis (40% of their capacity including social charges). Your company can perform up to 1600 assessments per year. The external company EVAL limited is offering to perform these assessments at a standard price per test. Including the licence fee the overall cost per assessment would be CHF 125. Please calculate the financial impact (change in operating profit for your company), if there is a negative profit please include the financial impact with a minus sign (-) for the following situations (enter whole numbers, without decimal places): A) Situation 1: You have excess capacity to conduct all yearly assessments. You can not reduce the working time of your employees and these are not be assigned to other tasks. What is the financial impact from outsourcing all assessments to EVAL? B) Situation 2: You have excess capacity to conduct all yearly assessments. You could reduce the working time of your employees by 80 % to reduce fixed costs. What is the financial impact from outsourcing all assessments to EVAL? C) Situation 3: You have excess capacity to conduct all yearly assessments. You can not reduce the working time of your employees. By re-assigning the employees to other tasks your company could generate an additional contribution mar- gin of CHF 90000. What is the financial impact from outsourcing all assessments to EVAL? D) Situation 4: You have not sufficient capacity to conduct all yearly assessments. To increase your capacity there would thus be annual fixed costs in the amount described above in the initial situation. What is the financial impact from outsourcing all assessments to EVAL (in this case there is no increase of capacity necessary)?|
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