Knowledge Transfer Associates Is in the Process of Evaluating Its

question 164

Multiple Choice

Knowledge Transfer Associates is in the process of evaluating its new client services for the business systems consulting division.
-Server Planning, a new service, incurred $270,000 in development costs.
-The direct costs of providing the service, which is all labor, averages $40 per hour.
-Other costs for this service are estimated at $310,000 per year.
-The current program for server planning is expected to last for two years. At that time, expected new operating systems are likely to make the service non viable.
-Customer service expenses average $300 per client, with each job lasting an average of 60 hours. The current staff expects to bill 22,800 hours for each of the two years the program is in effect. Billing averages $100 per hour.
What is the estimated life-cycle operating income for both years combined?

• A) $944,000
• B) $1,618,000
• C) ($674,000)
• D) $1,348,000

---

Definitions:

Antidepressants

Medications used to treat depression and other conditions by adjusting neurotransmitter levels in the brain.

Small-World Researchers

Scientists who study the phenomenon that most people are connected by relatively short chains of acquaintances, known as the "small-world phenomenon."

Networks

Groups or systems of interconnected individuals, entities, or points, often used in the context of social relationships or technological connections.

Micro Level

Pertaining to the smallest units of analysis in the social sciences, focusing on individuals or small groups and their interactions.