Cost Mgt. Inc, is a management consulting firm that specializes in management training programs. In-Line Manufacturing Inc. has approached Cost Mgt. to contract for management training for a one-year period. Last years income statement for Cost Mgt. is as follows: Revenues Costs $360,000 120,000 12,000 24,000 8,400 23,600 14,400 80,000 282.400 $ 77.600 Labor Equipment lease Rent Utilities Supplies Other costs Manager's salary Total costs Operating profit To satisty the In-Line contract, another part-time trainer will need to be hired at $42,000. Supplies will increase by 12% and other costs will increase by 15%. In addition, new equipment will need to be lease at a cost of $2,500. a. What are the differential costs that would be incurred if the In-Line contract is signed? 5pts b. If In-Line will pay $55,000 for one year (ie differential revenues), should Cost Mgt Inc., accept the contract? Explain your