Jamal, Kareem, Rashid and Associates Are in the Process of Evaluating

question 206

Multiple Choice

Jamal, Kareem, Rashid and Associates are in the process of evaluating its new client services for the business consulting division.
-Estate Planning, a new service, incurred $180,000 in development costs and employee training.
-The direct costs of providing this service, which is all labor, averages $30 per hour.
-Other costs for this service are estimated at $450,000 per year.
-The current program for estate planning is expected to last for two years. At that time, a new law will be in place that will require new operating guidelines for the tax consulting.
-Customer service expenses average $104 per client, with each job lasting an average of 500 hours. The current staff expects to bill 50,000 hours for each of the two years the program is in effect. Billing averages $46 per hour.
What is estimated life-cycle operating income for the first year?

• A) $339,600
• B) $149,200
• C) $159,600
• D) $319,200

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Definitions:

Mother

A female parent or individual who fulfills the role of nurturing and raising a child.

Overtime Work

Work performed beyond the standard hours set for a workday or workweek, typically compensated at a higher pay rate.

Job Satisfaction

The level of contentment or happiness that individuals feel with their job, including aspects like work environment, duties, and compensation.

Labor Force

The total number of people employed plus the number actively seeking employment.