Business, 17.04.2021 17:30 BakedBiscuit6896

B-You is a consulting firm that works with managers to improve their interpersonal skills. Recently, a representative of a high-tech research firm approached B-You's owner with an offer to contract for one year with B-You to improve the interpersonal skills of a newly hired manager. B-You reported the following costs and revenues during the past year. B-YOU
Annual Income Statement
Sales revenue $ 251,600
Costs
Labor 120,000
Equipment lease 17,500
Rent 14,800
Supplies 10,000
Officers' salaries 74,000
Other costs 7,400
Total costs $ 243,700
Operating profit (loss) $ 7,900
If B-You decides to take the contract to help the manager, it will hire a full-time consultant at $81,500. Equipment lease will increase by 5 percent. Supplies will increase by an estimated 10 percent and other costs by 15 percent. The existing building has space for the new consultant. No new offices will be necessary for this work.
What are the differential costs that would be incurred as a result of taking the contract?

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