Required information (The following information applies to the questions displayed below.) B You is a consulting firm that works with managers to improve their interpersonal skills. Recently, a representative of a high-tech research firm approached B.You's owner with an offer to contract for one year with B You to improve the Interpersonal skills of a newly hired manager. B. You reported the following costs and revenues during the past year B-you Annual Incone Statenent Sales revenue $ 238,100 Costs Labor Equipment lease Rent Supplies officers salaries Other casts Total costs Operating profit (los) 119,000 17,100 16,500 10,300 66,000 2500 $ 232,400 5 5,700 If B-You decides to take the contract to help the manager, it will hire a full time consultant at $84.000. Equipment lease will Increase by 5 percent. Supplies will increase by an estimated 10 percent and other costs by 15 percent. The existing building has space for the new consultant No new offices will be necessary for this work Required: a. What are the differential costs that would be incurred as a result of taking the contract? Total costs S b. If the contract will pay $85,000, should B-You accept it? Yes or No Yes No 7 c. What considerations, other than costs, do you think are necessary before making this decision? (Select all that Check All That Apply Whether the contract will provide for more revenues in the future Whether this will enable the company to get into a new, profitable line of business What other opportunities the company has for expanding Profitability of the other contracts Current financial position of the company