Requlred Information

Problem $1\mathrm{.}45($Algo$)$ Cost Data for Managerial Purposes $($LO $1-3)$

$[$The following information applies to the questions displayed below.$]$

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$).$

If B$-$You decides to take the contract to help the manager, it will hire a full$-$time consultant at $$86,500.$ 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 $1-45($Algo$)$ Part c

Requlred:

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

Note: You may select more than one answer. Slngle cllck the box with the questlon mark to produce a check mark for a correct

answer and double cllek the box with the questlon mark to empty the box for a wrong answer. Any boxes left with $$ questlon mark

will be outomatically graded as Incorrect.

Whether the contract will provide for more revenues in the future.

Whether this will enable the company to get Into a new, profitable line of business.

What other opportunitles the company has for expanding.

Profitability of the other contracts.

Current financlal position of the company.