Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Company Y is a market research company providing data to consumer goods companies about the markets in which they operate. They have undertaken a contract
Company Y is a market research company providing data to consumer goods companies about the markets in which they operate. They have undertaken a contract whose fee income will be 75,000 when completed. To date they have already paid 10,000 for initial research. They have employed a market researcher on a temporary basis, with a salary of 5,000 per month. This can be terminated if the contract is abandoned, but if they continue, it is expected that the researcher will stay for 6 more months. To complete the contract they will need to purchase specialist software for 15,000 and will have processing costs of 8,000, including IT, stationery, printing, and postage. They will be able to use existing staff to carry out interviews but will lose the contribution from another project of 14,000. The project will be charged with a cost to cover general overheads, calculated at 10% of fee income. Determine in the schedule below the relevant revenue(s) and relevant costs and determine the net benefit or net loss of the project by choosing the appropriate alternative for each blank Revenue/cost Detail Relevant or non-relevant? Amount in , if relevant (if non-relevant, choose "O") Revenue Contract revenue [Select] [Select] Costs Initial research [Select] [Select] [Select] Temporary market researcher's salary [Select] V Specialist software [Select] [Select] Processing costs Select] [Select] Contribution from another project [Select] [Select ] Overheads [Select] [Select] Net benefit or loss [Select]
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started