Answer the Following Questions Using the Information Below

question 185

Multiple Choice

Answer the following questions using the information below:
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 $100,000 in development costs and employee training.
• The direct costs of providing this service, which is all labor, averages $27 per hour.
• Other costs for this service are estimated at $400,000 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 $95 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 $42 per hour.
-What are estimated life-cycle revenues?

• A) $1,680,000
• B) $90,500
• C) $3,360,000
• D) $181,000

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Definitions:

Influential Franchise

A media franchise that has had a significant impact on culture, trends, and industry standards through its popularity and financial success.

Directorial Debut

The first film or project directed by an individual, marking their introduction to the film industry or genre as a director.

Paul Reubens

An American actor and comedian best known for his character Pee-wee Herman, bringing a unique comedic aesthetic to both film and television.

Horizontally Integrated

Describes a business strategy where a company expands its operations into areas that are similar to its current line.