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Extension Activity Scenario You are the manager of a successful business mentoring service and have been approached by a potential new client. To offer the

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Extension Activity Scenario You are the manager of a successful business mentoring service and have been approached by a potential new client. To offer the client an acceptable level of service you have determined the following requirements: Your current monthly costs are: SeniorstaffJuniorstaffDatabaseandsoftwaresubscription2@4@@29901820250perclientpermonth The database and software were customised to meet your firm's needs at a cost of 7,5008 months ago. Your current billing details are: SeniorstaffJuniorstaffDatabaseandsoftwaresubscriptis@65perhour25perhour300permonth Senior and junior staff work 130 hours each per month. Required The potential client is very keen to work with you, but they have told you the absolute maximum they can afford is 1,800 per month. From a financial perspective only (ignoring other pricing implications), would you take on the new client if: a) You have sufficient spare capacity b) You do not have sufficient spare capacity c) You have sufficient spare capacity at a senior level but none at a junior level. You can hire an interir junior member of staff at a cost of 20 per hour Your answer should identify and explain the relevance for these decisions of

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