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:

Hammer, Anvil, Stirrup

Three tiny bones in the middle ear that play a crucial role in the process of hearing.

Hertz

The unit of frequency in the International System of Units (SI), equal to one cycle per second, used to measure the frequency of waves.

Frequency Of Sound Waves

refers to the number of complete oscillations or cycles per second of a sound wave, measured in Hertz (Hz), determining the pitch of the sound.

Pitch Discrimination

The ability to distinguish between different tones or musical notes based on their frequency, an important aspect of auditory perception.