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With the popularity of home improvement shows, Donald has seen a jump in inquiries about kitchen remodels. His business, Kitchen It , employs three designers,

With the popularity of home improvement shows, Donald has seen a jump in inquiries about kitchen remodels. His business, Kitchen
It, employs three designers, each with expertise in architecture and interior design. He offers free quotes to potential clients with a
goal of securing half of the bids for full-service work. He then works with general contractors and other vendors to complete the
renovations.
Right now, his designers have no idle capacity. And Donalds hands are full too, so he cant handle hiring another designer to help with
the workload. Given the strong reputation he has earned and the demand for these services, he may have to turn away potential
clients. Select quantitative information is provided below for his business. Time on task refers to design hours. Number of projects
available refers to projects where the client has received the bid and has asked Donald to move forward with the project.
Large Job Medium Job Small Job
Average service fees $4,910 $2,470 $1,020
Average variable costs $1,370 $1,160 $810
Time on task (hours)1003530
Number of projects available 405540

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