Answer the Following Questions Using the Information Below

question 114

Multiple Choice

Answer the following questions using the information below:
Waugh,Chapple,Border and Associates is in the process of evaluating its new client services for the business consulting division.
∙ Estate planning,a new service,incurred $600 000 in development costs and employee training.
∙ The direct costs of providing this service,which is all labour,averages $100 per hour.
∙ Other costs for this service are estimated at $2 000 000 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 $400 per client,with each job lasting an average of 400 hours.The current staff expects to bill 40 000 hours for each of the two years the program is in effect.Billing averages $140 per hour.
-What are the estimated life-cycle revenues?

• A)$22 400 000
• B)$6 400 000
• C)$11 200 000
• D)$8 000 000

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Definitions:

Mental Disorders

A broad range of conditions affecting mood, thinking, and behavior, often resulting in distress or impairment in social, occupational, or other important functions.

Psychiatrist

A medical doctor who specializes in diagnosing, treating, and preventing mental, emotional, and behavioral disorders, often through medication.

Psychologist

A professional specializing in diagnosing and treating mental, emotional, and behavioral disorders.

Prescribe Medications

The act of a healthcare provider authorizing the use of pharmaceutical drugs for a patient.