EBC has two offices, one in northern California and one in southem Califormia. EBS provides three...
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EBC has two offices, one in northern California and one in southem Califormia. EBS provides three basic services to its clients: rate reviews, contract procurement and negotiations, and operational studies. EBC management wants to determine how many projects of each service would need to be performed in 2022 to achieve a before-tax profit of $650,000. EBC managers have gathered the following information from 2019 for the analysis. Nothern Southem Calformia Calfomia 20% 60% 10% Rate reviews 50% Contract procurements 30% Operational studies 20% The average contribution margin for each project type was as folows Nothern Southern Calfomia Calformia 5,100 $ 24,124 Rate reviews Contract procurements Operational studies EBC has budgeted 2022 fixed expense to be $2,251,159 and $644,341 in the northem and southem California offices, respectively %24 $ 28,000 S 37,000 $ 10,035 $ 20,000 1. How many projects of each type must EBC perform in the northem California offices if managers expect the office to generate $450,000 of the desired total income? 2. How marny projects of each type must EBC perform in the southern Califormia office if managers expect the office to generate $200,000 of the desred total income? EBC has two offices, one in northern California and one in southem Califormia. EBS provides three basic services to its clients: rate reviews, contract procurement and negotiations, and operational studies. EBC management wants to determine how many projects of each service would need to be performed in 2022 to achieve a before-tax profit of $650,000. EBC managers have gathered the following information from 2019 for the analysis. Nothern Southem Calformia Calfomia 20% 60% 10% Rate reviews 50% Contract procurements 30% Operational studies 20% The average contribution margin for each project type was as folows Nothern Southern Calfomia Calformia 5,100 $ 24,124 Rate reviews Contract procurements Operational studies EBC has budgeted 2022 fixed expense to be $2,251,159 and $644,341 in the northem and southem California offices, respectively %24 $ 28,000 S 37,000 $ 10,035 $ 20,000 1. How many projects of each type must EBC perform in the northem California offices if managers expect the office to generate $450,000 of the desired total income? 2. How marny projects of each type must EBC perform in the southern Califormia office if managers expect the office to generate $200,000 of the desred total income?
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