Your company is conducting individual career assessments. For each of these assessments you are to pay...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Your company is conducting individual career assessments. For each of these assessments you are to pay licence fees, additionally labour cost apply. The variable costs per assessment are CHF 60 The fixed costs are labour cost of CHF 70000 on a yearly basis (40% of their capacity including social charges). Your company can perform up to 1600 assessments per year. The external company EVAL limited is offering to perform these assessments at a standard price per test. Including the licence fee the overall cost per assessment would be CHF 125. Please calculate the financial impact (change in operating profit for your company), if there is a negative profit please include the financial impact with a minus sign (-) for the following situations (enter whole numbers, without decimal places): A) Situation 1: You have excess capacity to conduct all yearly assessments. You can not reduce the working time of your employees and these are not be assigned to other tasks. What is the financial impact from outsourcing all assessments to EVAL? B) Situation 2: You have excess capacity to conduct all yearly assessments. You could reduce the working time of your employees by 80 % to reduce fixed costs. What is the financial impact from outsourcing all assessments to EVAL? C) Situation 3: You have excess capacity to conduct all yearly assessments. You can not reduce the working time of your employees. By re-assigning the employees to other tasks your company could generate an additional contribution mar- gin of CHF 90000. What is the financial impact from outsourcing all assessments to EVAL? D) Situation 4: You have not sufficient capacity to conduct all yearly assessments. To increase your capacity there would thus be annual fixed costs in the amount described above in the initial situation. What is the financial impact from outsourcing all assessments to EVAL (in this case there is no increase of capacity necessary)?| Your company is conducting individual career assessments. For each of these assessments you are to pay licence fees, additionally labour cost apply. The variable costs per assessment are CHF 60 The fixed costs are labour cost of CHF 70000 on a yearly basis (40% of their capacity including social charges). Your company can perform up to 1600 assessments per year. The external company EVAL limited is offering to perform these assessments at a standard price per test. Including the licence fee the overall cost per assessment would be CHF 125. Please calculate the financial impact (change in operating profit for your company), if there is a negative profit please include the financial impact with a minus sign (-) for the following situations (enter whole numbers, without decimal places): A) Situation 1: You have excess capacity to conduct all yearly assessments. You can not reduce the working time of your employees and these are not be assigned to other tasks. What is the financial impact from outsourcing all assessments to EVAL? B) Situation 2: You have excess capacity to conduct all yearly assessments. You could reduce the working time of your employees by 80 % to reduce fixed costs. What is the financial impact from outsourcing all assessments to EVAL? C) Situation 3: You have excess capacity to conduct all yearly assessments. You can not reduce the working time of your employees. By re-assigning the employees to other tasks your company could generate an additional contribution mar- gin of CHF 90000. What is the financial impact from outsourcing all assessments to EVAL? D) Situation 4: You have not sufficient capacity to conduct all yearly assessments. To increase your capacity there would thus be annual fixed costs in the amount described above in the initial situation. What is the financial impact from outsourcing all assessments to EVAL (in this case there is no increase of capacity necessary)?|
Expert Answer:
Answer rating: 100% (QA)
A Statement Showing Financial Impact Particulars In House External Party Impact Variable Cost 960000... View the full answer
Related Book For
Posted Date:
Students also viewed these accounting questions
-
For each of these sentences, determine whether an inclusive or, or an exclusive or, is intended. Explain your answer. a) Coffee or tea comes with dinner. b) A password must have at least three digits...
-
For each of these pairs of functions, determine whether f and g are asymptotic. a) f (x) = log(x2 + 1), g(x) = log x b) f (x) = 2x+3, g(x) = 2x+7 c) f (x) = 22x, g(x) = 2x2 d) f (x) = 2x2 + x+1, g(x)...
-
For each of these graphs, determine (i) whether Dirac's theorem can be used to show that the graph has a Hamilton circuit, (ii) whether Ore's theorem can be used to show that the graph has a Hamilton...
-
A credit card contains 16 digits. It also contains a month and year of expiration. Suppose there are one million users of a credit card with unique card numbers. A hacker randomly selects a 16 digit...
-
List three of the more important responsibilities of a partner in a public accounting firm.
-
Derive the formula for the population in Example 3, if the population in 1995 was 2 million. Example 3 In 2005, people in a country suffering from economic problems started to emigrate to other...
-
Describe the key steps in entrepreneurial philanthropy. Identify a successful local entrepreneur and investigate his or her philanthropic activities. Does the local entrepreneurs process align with...
-
1. Liam Richardson is the business manager for the Smith & Lyngate Insurance agencies in the state of Maryland. Liam is interested in increasing the number of agents in Baltimore and plans to buy...
-
What is the first stage of the perception process, requiring us to use our visual, auditory, tactile, and olfactory senses to respond to stimuli in our interpersonal environment. Explain in details.
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
In an n-type semiconductor bar, there is an increase in electron concentration from left to right and an electric field pointing to the left. a. With a suitable sketch, indicate the directions of the...
-
The uniform rectangular relief gate AB has a weight of 8000 lb and a width of 4 ft. Determine the specific weight of the fluid if a minimum depth h= 5.626 ft of the fluid within the container is...
-
Table 1 shows an abridged portion of the unit process for processing soybeans to make soy oil, which can be used to make alternative fuels. The table has been normalized per unit of soy oil. For ease...
-
The rate constant k for a certain reaction is measured at two different temperatures: temperature 57.0 C 198.0 C E = Assuming the rate constant obeys the Arrhenius equation, calculate the activation...
-
Propane (C3H8) at standard temperature and pressure (298K and 1 atm) is combined with air at 500K and 1 atm in stoichiometric proportions and burned in a control volume (open system). a. (10 points)...
-
Consider a gaseous mixture of 20% CO, 20% CO2, 50% H and 10% HO which is brought to a temper- ature T = 1500 K at 1 bar. What is the final equilibrium composition of the gaseous phase? (Useful Data:...
-
An economy is currently at point A in the graph below. Is this economy experiencing a recessionary gap or an inflationary gap? Explain why.
-
Four GWU students have been selected to taste food sold by 3 different food trucks labeled as food truck A, B and C on H & 22nd Streets every Monday for 3-weeks. For each student, food trucks are...
-
(a) What is the measure of net debt? (b) Why is it a useful indicator of a government's financial position? (c) When a public sector entity does not have net debt, how is the equivalent measure...
-
You, CA, are in charge of the audit of Fuschia Enterprises, a manufacturer of crayons in Vancouver, British Columbia with sales in 2012 of $75 million. This year, sales have increased due to...
-
What is an associate company?
-
The Private Securities Litigation Reform Act of 1995 and the U.S. Supreme Court's decision in Central Bank of Denver v. First Interstate Bank of Denver represent major victories in the profession's...
-
What are heuristics, and why are they of concern to auditors?
-
Identify and briefly describe the major files that are typically maintained separately from audit working papers.
Study smarter with the SolutionInn App