Answer the Following Questions Using the Information Below

question 78

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 is the estimated life-cycle operating profit for the first year?

• A)$(1 040 000)
• B)$6 640 000
• C)$(1 400 000)
• D)$5 600 000

Explain the significance of the lowest point on the average total cost curve.

Understand the relationship between a perfect competitor's demand curve and their marginal revenue curve.

Predict changes in output in response to economic conditions in the short run and long run.

Calculate total profits based on various economic conditions.

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Definitions:

Auscultate

The act of listening to the internal sounds of the body, typically using a stethoscope, as part of a medical examination.

Stethoscope Endpiece

The part of a stethoscope that is placed against the patient's skin to listen to internal body sounds, such as heartbeats and breathing.

Bell Side

The larger, concave side of a stethoscope used for listening to lower-pitched sounds in the body such as heart murmurs.

Percussing Over Liver

The act of tapping on the skin overlying the liver to assess its size and density, part of a physical examination to detect liver abnormalities.