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also how many project of each type must EBC perform in Southern California office if managers expect the office to generate $200,000 of the desired
also how many project of each type must EBC perform in Southern California office if managers expect the office to generate $200,000 of the desired total income?
EBC has two offices, one in northern California and one in southern California. 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. Northern California: Rate reviews-30%, Contract procurements-60%, Operational Studies-10% Southern California: Rate reviews-50%, Contract procurements-30%, Operational Studies-20% The average contribution margin for each project type was as follows: Northern California: Rate reviews-$5,100, Contract procurements-$28,000, Operational Studies $10,035 Southern California: Rate reviews-$5,100, Contract procurements-$37,000, Operational Studies-$20,000 EBC has budgeted 2022 fixed expenses to be $2,251,159 and $644,341 in the northern and southern California offices, respectively. How many projects of each type must EBC perform in the northern California offices if managers expect the office to generate $450,000 of the desired total income? 4 Points Step by Step Solution
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