Dickerson Consultants offers logistics advice for large retail firms. Dickerson classifies its consultants into three categories, based on their experience and skills. The three levels are partner, senior, and associate. Dickerson quotes prices for prospective clients based on standardized hourly billing rates for the consultants. It then adds an estimate for travel, supplies, and so on (referred to as out-of-pocket costs). Finally, it applies a percentage to the total of consultant time and out-of-pocket cost to cover general and administrative (G&A) expense. The estimates for each of these elements are shown as follows:

Required

Grand Fashions, a national clothing chain, has requested a quote from Dickerson for an analysis of the current Grand Fashions supply chain. The financial staff at Dickerson and the managing partner for the clothing sector estimate that the work will require 25 partner hours, 300 senior hours, and 700 associate hours. Based on similar jobs, they estimate out-of-pocket costs to be $135,000. What is the estimated cost of the proposed consulting project, based on these estimates? 

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Partner cost (per hour).. Senior cost (per hour).. Associate cost (per hour).. G&A factor.... $1,000 750 425 35%