Problem $1-45($Static$)$ Cost Data for Managerial Purposes $($LO $1-3)$

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B$-$You is a consulting firm that works with managers to improve their interpersonal skills. Recently, a representative of a high$-$tech research firm approached B$-$You's owner with an offer to contract for one year with B$-$You to improve the interpersonal skills of a newly hired manager. B$-$You reported the following costs and revenues during the past year $($before the proposed contract$).$

B$-$YOUAnnual Income StatementSales revenue$ $550,000$Costs$$Labor$260,000$Equipment lease$40,000$Rent$35,000$Supplies$27,000$Officers' salaries$160,000$Other costs$17,000$Total costs$ $539,000$Operating profit $($loss$)$$ $11,000$

If B$-$You decides to take the contract to help the manager, it will hire a full$-$time consultant at $$85,000.$ The equipment lease will increase by $20$ percent. Supplies will increase by an estimated $10$ percent and other costs by $15$ percent. The existing building has space for the new consultant. No new offices will be necessary for this work.

Problem $1-45($Static$)$ Part c

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c$.$ What considerations, other than costs, do you think are necessary before making this decision?