A company is deciding where to assign its summer intern. The manager estimates that the intern can save the company $10,000 in supply chain costs. What increase in sales (revenue) by the intern is required to show an equal profit?
Definitions:
Service Revenue
Income earned by a company for providing services as opposed to selling physical products.
Book Value
The value of an asset according to its balance sheet account balance, calculated by subtracting the asset's accumulated depreciation from its purchase price.
Salvage Value
At the conclusion of its useful life, an asset's salvage value is the anticipated market price upon resale.
Service Revenue
Revenue generated by a business through the delivery of services to its clientele.
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