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Project revenue, costs and profits for XYZ Payroll Services
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?
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