A college lab does testing for outsiders for a fee of $50 per hour. You have two technicians devoted to this purpose. You know from experience that they have enough work to keep them busy most of the time. Some years they have had work to keep themselves occupied 100 percent of the time. Other years it has been as low as 90 percent of the time. Assume the technicians are in the labs for 40 hours a week for 45 weeks of the year. What revenue estimate would you use for lab work in your budget? Suppose college leaders have voiced concern about campus programs spending more than they take in, "running red ink" as they put it. In that case, what would be the appropriate forecast?

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To estimate revenue from lab work we can calculate the potential revenue based on the technicians av... View the full answer