Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dean Consulting provides consulting services at an average price of $200 per hour and incurs variable costs of $130 per hour. Assume average foxed costs

image text in transcribed
Dean Consulting provides consulting services at an average price of $200 per hour and incurs variable costs of $130 per hour. Assume average foxed costs are $5.600 a month Dean has developed new software that will revolutionize biling for companies Dean has already invested $100,000 in the software. It can market the software as is at $80,000 per client and expects to sell to 10 clients Dean can develop the software further, adding integration to Microsoft products at an additional development cost of $175.000 The additional development will allow Dean to sell the software for S90,000 each but to 12 dlients Should Dean sell the software as is or develop it further? Complete the following differential analysis to compare selling the software as is with processing the software further. (Enter decreases to profits with a parentheses or minus sign For the difference in total net revenue, use a parentheses or a minus sign if processing further will decrease total net revenue) Process Sell As Is FurtherDifference Expected revonue from selling to 10 clients Expected revenue from selling to 12 clients Additional costs of processing Total net revenue

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Level Audit And Assurance Exam Room Notes 2017

Authors: ACA Simplified

1st Edition

1545501653, 978-1545501658

More Books

Students also viewed these Accounting questions

Question

Enhance the basic quality of your voice.

Answered: 1 week ago

Question

Describe the features of and process used by a writing team.

Answered: 1 week ago