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Please provide a detailed calculation procedure. Thank you. Quote Limited has been asked to provide a quotation for a job that will last 6 months
Please provide a detailed calculation procedure. Thank you.
Quote Limited has been asked to provide a quotation for a job that will last 6 months using 3 permanent employees on a full-time basis. Each employee earns an annual salary of 23,000. Two of these employees are about to be made redundant and the redundancy pay for each in 7,500. The projected net profit on this job, after charging all expenses, including depreciation is 127,500. The depreciation charge on equipment is 11,000. That equipment will remain with the company whether the contract is awarded or not. What is the incremental cash flow relating to this job? A) 138,500 B) 222,500+ C) 253,500 D) 207,500 E) None of the aboveStep by Step Solution
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