Analyze the Decision Making case in the attached file and submit a response. Calculate the increase or decrease in overall company profit in dollars and show how you calculated your answer. Describe the qualitative factors that might affect your decision and give your recommendation on whether to accept the Northwood engagement, with your reasons.

PRIMUS CONSULTING GROUP Primus is a firm of consultants that focuses on process reengineering and quality improvement initiatives. Northwood Industries has asked Primus to conduct a study aimed at improving on time delivery. Normal practice for Primus is to bill for consultant time at standard rates plus actual travel costs and estimated overhead. However, Northwood has offered a flat $85,000 for the job. Currently Primus has excess capacity in that it can take on the Northwood job without turning down other business and without hiring additional staff If normal practices were followed, the bill would be: Hours Rate $250 Classification Amount Partner Senior consultant Staff consultant Travel costs Overhead at $20 per Nonpartner hour Total $150 $80 $25,000 30,000 16,000 15,000 8.000 $94.000 Overhead (computer costs, rent, utilities, paper, copying, etc.) is determined at the start of the year by dividing estimated annual overhead costs ($1,600,000) by total estimated nonpartner hours (80,000 hours). Approximately 10 percent of the total overhead amount is variable costs. All Primus employees receive a fixed annual salary (ie, there is no compensation for overtime and they are paid monthly, even if they are on the beach."). Annual compensation in the previous year amounted to the following: Per Hour Partners $260 Senior consultant $ 95 Staff consultant $ 45 Required What will be the effect on company profit related to accepting the Northwood Industries job? What qualitative factors should be considered in the decision as to whether or not to accept the job