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Author Question: Knowledge Transfer Associates is in the process of evaluating its new client services for the ... (Read 93 times)

melina_rosy

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on: Mar 6, 2021
Knowledge Transfer Associates is in the process of evaluating its new client services for the business systems consulting division.
∙  Server Planning, a new service, incurred $280,000 in development costs.
∙  The direct costs of providing the service, which is all labor, averages $70 per hour.
∙  Other costs for this service are estimated at $350,000 per year.
∙  The current program for server planning is expected to last for two years. At that time, expected new operating systems are likely to make the service non viable.
∙  Customer service expenses average $350 per client, with each job lasting an average of 20 hours. The current staff expects to bill 7900 hours for each of the two years the program is in effect. Billing averages $100 per hour.

What is the estimated life-cycle operating income for the first year?
◦ -$251,250
◦ -$782,500
◦ -$531,250
◦ $531,250
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by melina_rosy on Mar 6, 2021

diana chang

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Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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melina_rosy

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review

okolip

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Reply 3 on: Yesterday
Excellent

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