Question
There is a Part B and C to this question... but I am having so much trouble with Part A I cant get there. Please
There is a Part B and C to this question... but I am having so much trouble with Part A I cant get there. Please help. And can you work it out by chance because I have 10 more questions very similar to this with Part A B and C. Thank you!!
Morris Inc. is a management consulting firm that specializes in management training programs. Tackle Manufacturing Inc. has approached Morris to contract for management training for a one-year period. Last year's income statement for Morris is as follows:
Sales Revenue$360,000Costs:Labor$120,000Equipment Lease12,000Rent24,000Utilities8,400Supplies23,600Other Costs14,400Manager's Salary80,000Total Costs282,400Operating Profit (Loss)$77,600
To satisfy the Tackle 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 leased at a cost of $2,500.
a. What are the differential costs that would be incurred if the Tackle contract is signed?
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