Answer the Following Questions Using the Information Below

question 125

Multiple Choice

Answer the following questions using the information below:
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 $250,000 in development costs.
• The direct costs of providing the service, which is all labor, averages $50 per hour.
• Other costs for this service are estimated at $300,000 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 $250 per client, with each job lasting an average of 40 hours. The current staff expects to bill 15,000 hours for each of the two years the program is in effect. Billing averages $90 per hour.
-What are the estimated life-cycle revenues?

• A) $2,700,000
• B) $3,000,000
• C) $3,400,000
• D) $1,350,000

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Definitions:

Mental Illness

A broad range of conditions that affect mood, thinking, and behavior, often diagnosed according to standardized criteria.

Fully Functioning Member

An individual who is living in alignment with their true self, experiencing an ongoing process of growth and self-improvement.

Antisocial Personality Disorder

A mental health disorder characterized by a long-term pattern of disregarding or violating the rights of others.

Substance Use Disorders

Disorders characterized by the inability to use a substance in moderation and/or the intentional use of a substance to change one’s thoughts, feelings, and/or behaviors, leading to impairment in work, academic, personal, or social endeavors.