Computing projected revenue-costs and potential profits

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Q1) XYZ Payroll Services during the current year is around 50,000 worker hours and with current operations covers all customer demand. XYZ Payroll Services is planning on a 5% growth rate each year. If we let x= total worker-hours, XYZ Payroll Services will incur a one-time cost of $15x to expand. Each customer serviced incurs a variable cost of $3.00 per worker-hour total then XYZ Payroll Services $6.00 per worker - hour of capacity per year. XYZ Payroll Services garners $25 per worker hour from its customers.

What is the projected revenue, costs, and potential profits would be over the next 10 years based on the current capacity, 50,000 worker-hours, and expansion to 70,000 worker-hours, and an expansion to 90,000 worker-hours?

Reference no: EM1338133

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