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Villy ovjectives. (4 marks) 3) KMC Sdn Bhd provides tax services. A local trader has asked KMC for tax services. KMC's costs and revenues are

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Villy ovjectives. (4 marks) 3) KMC Sdn Bhd provides tax services. A local trader has asked KMC for tax services. KMC's costs and revenues are as follows: KMC Sdn Bhd Annual Income Statement Sales Revenue RM 720,000 Salary Equipment Lease Rent Supplies Other Costs Total Costs Net profit 552,000 50,400 43,200 32,400 22,800 700,800 19,200 If KMC gets the additional appointment, there will be an additional salary cost of RM60,000, and it is estimated that there will be an increase of equipment leases of 10 percent, supplies by Supercent and other.costs by 15 percent. Required: a) What are the differential costs that would be incurred as a result of adding this new client? (2 marks) b) KMC would normally charge RM75,000 in fees. Advise how much should be charged without incurring a loss. (1 mark) c) List the considerations, other than costs which are necessary before making the decision

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