Carlos Consulting Inc A Consulting Job Takes 20 Hours of Consulting Time and Data

question 19

Multiple Choice

Carlos Consulting Inc.provides financial consulting and has collected the following data for the next year's budgeted activity for a lead consultant. $$\begin{array} { l l } \text { Consultants' wages } & \$ 90,000 \\\text { Fringe benefits } & \$ 22,500 \\\text { Related overhead } & \$ 17,500 \\\text { Supply clerk's wages } & \$ 18,000 \\\text { Fringe benefits } & \$ 4,000 \\\text { Related overhead } & \$ 20,000 \\\text { Profit margin per hour } & \$ 20 \\\text { Profit margin on materials } & 15 \% \\\text { Total estimated consulting hours } & 5,000 \\\text { Total estimated supply costs } & \$ 168,000\end{array}$$ A consulting job takes 20 hours of consulting time and $180 of supplies.The client's bill would be

• A)$1,172.
• B)$772.
• C)$952.
• D)$1,100.

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Definitions:

High Quality

A description of goods or services that meet or exceed consumer expectations in terms of performance, durability, and reliability.

Optimal Combination

The most favorable mix of goods, services, or resources to achieve the highest level of satisfaction or output with given resources and constraints.

Efficiency

The property of a resource allocation of maximizing the total surplus received by all members of society.

Equality

The property of distributing economic prosperity uniformly among the members of society.