CAN YOU PLEASE ANSWER THE FOLLOWING QUESTION

White Bolder Investments (WBI) You are an intern working for WBI, a large investment advisory services in Sydney. Among other regular customers, WBI has been providing advisory services for Jumbo Bank (JB) and Ombrelloni Felici (OF). For the sake of simplicity, this assignment does not consider taxes and other fees. You might have to use information from previous questions for answering information for following questions and whenever possible support your arguments with your calculations. One of your LinkedIn contacts who poses himself as an entrepreneur and is starting a trendy business shirt venture has offered you a one chance in a lifetime of becoming his partner in this new incredible venture. The entrepreneur has offered you a partnership in this venture under the condition you share with him the WBI employees and customers contact list. The entrepreneur has guaranteed you a commission for any WBI employee or customer who buys one of the trendy business shirts. Question 2 WBI board is discussing how much a business advisor should charge per hour of service. WBI has budgeted to supply 300,000 hours of business advisory service for the forthcoming year. Its variable cost is estimated at $35 per hour and its fixed costs are estimated at $4,000,000 for the forthcoming year. The board has been discussing whether to use a cost-plus approach or perhaps examining the demand levels. The marketing department has the following estimation on demand levels at different prices: Table 1-Demand levels Price per hour Demand in hours $64 310,000 $65 300,000 $66 280,000 $67 270,000 $68 250,000 Required a) Calculate the price per hour WBI should charge based on a cost-plus approach for pricing the service at full cost plus 35%. (Chapter 12, 5 marks) 1 This is the additional reading for this unit. A copy of the document is available at https://www.imanet.org/insights-and-trends/business- leadership-and-ethics/ima-statement-of-ethical-professional-practice Page 4 of 9 b) Considering WBI can meet any demand level in Table 1 and that fixed costs will remain unchanged for all the preceding demand levels, what price per hour should WBI charge based on demand levels? (e.g., Exercise 12.13, Chapter 12, 10 marks) c) State one benefit of the cost-plus approach and one benefit of the demand levels approach applied to WBI and, between the two approaches, which approach should WBI board choose for long-term planning of the business advisory service and why? (Chapter 12, 10 marks)