Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Question - EDF plc is a company that provides management consultancy services to medium-sized organizations. A core staff of full-time consultants are employed but a large number of outside consultants are also employed on short-term contracts. The outside consultants enable the firm to offer a wide range of consultancy services to their clients. However, the full-time consultants are permanent members of staff and will be employed even if there is a temporary decrease in the revenues generated, as their knowledge and experience is crucial. It is known there is some spare capacity in the work-loads of the full-time employees. When the 2004 budget was prepared, the company's costs and revenues were estimated as: -
Revenue Fees - 40 000 hours at $75 / hour 3 000 000 Costs Full-time consultants (10 consultants at $40 000 per annum) 400 000 Outside consultants (36 000 hours at $50 per hour) 1 800 000 Fixed operating costs 60 000 Fixed Administration costs 640 000 Total costs 2 900 000 Operating profit 100 000
You have been asked you to consider the following questions relating to proposals to improve the company's profit during 2004.
(i) The company has been asked to quote for a consultancy job that will require 20 000 hours of work. As the full-time consultants have spare capacity, they will be able to provide an input to this job of 8 000 hours. This means that the outside consultants will be needed for 12 000 hours. What is the minimum price that could be charged to increase the company's profit by $10 000? Show supportive calculations
(ii) If all fees were reduced to $70 per hour, it is estimated that the demand would increase by 20 000 hours per annum? This would mean that no extra fulltime consultants would be employed but an additional 20 000 hours of outside consultants would be required. Should the company reduce its fees to $70 per hour? Show supportive calculations.
Mr. Poulet's partnership interest had an adjusted cost base on January 1, 2019 of $222,000. What is the adjusted cost base on January 1, 2020?
The accounts receivable at the beginning of the year is $400,000. Calculate the Bad Debt expense for the year and the balance in the Allowance
Average revenue generated per day by each tablet is $1. Calculate the NPV of the investment in the tablets using a discount rate of 6%
During October, the company purchased 240,000 pounds of material at a total cost of $588,000. Compute the material quantity and labor efficiency variances
His farm as a whole is worth $300,000. Shortly after receiving the $160,000, Jacob buys more land for $160,000. What is Jacobs realized gain
What gain and net reduction in retained earnings would result from this property dividend?
Advise Smithand his wife of the Australian tax consequences of the above fact situation, referring to appropriate legislation, case law and tax rulings
The $1,000 face value bonds issued by the Springfield Fabrication Corporation are perceived by investors as being less attractive than other bonds sold by other businesses ate the same time.
You can easily generate random numbers in a spreadsheet that have an exponential distribution with a given mean. For example, to generate 200 such numbers from an exponential distribution with λ = 1/3, enter the formula = - 3*LN(RAND()) in cell A4..
Compute the income, gain or loss that Corbin and ABC would have to report on this distribution if ABC is a partnership.
The Palmer Acres Inn is trying to determine its break-even point during its off-peak season. Determine the inn's break-even point in dollars
Computing and Recording a Basket Purchase and Straight-Line Depreciation Bridge City Consulting bought a building and the land on which it is located.
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd