Environmental Business Consultants, LLC (EBC) has been approached by Terrabean Cof- fee, a large retail coffee company with 5,000 shops across North America. to manage Ter- rabean Coffee's waste disposal and recycling services under a 3-year contract. It is unlikely that the contract would be extended beyond the initial 3-year term. Terrabean has asked EBC to provide these services at a discounted average hourly billing rate of \($60\) per hour. In order to take on this major new contract, EBC would need to establish a call cen- ter to receive calls from the 5,000 shops and coordinate the appropriate response. The call center would be in a leased office space at a cost of \($3.000\) per month, including utilities. Additional capital, including office furniture, computers, and phones, would be purchased at a total cost of \($35,000.\) The office furniture, computers, and phones are ex- pected to have a value of \($5,000\) at the end of the contract and would not be of use to EBC in its regular business. The call center would be managed by a current EBC consultant that normally bills 1,800 hours per year at a rate of \($125\) per hour. An additional ten call center employees would be hired at an average hourly wage of \($25.\) plus benefits equal to 50% of the hourly wage. Each employee would be expected to work 2,000 hours per year. EBC expects to bill Terrabean 20,000 hours per year for the call center under the contract.

Required 

1. Determine whether EBC should accept this new contract offer from Terrabean. Calculate the differential net revenue or cost associated with the contract. (Hint: Don’t forget that the call center manager is a current EBC employee and would not be available for any other work.)
2. What other factors should EBC management consider in making the decision?