An engineering consulting office has output as service hours which has variable
cost cV & fixed cost Cf of $50 per hour &2,100,000 per year respectively. The
charge-out (selling price P) is $90 per hour & the maximum output of this firm
is 250,000 hours per year. For this firm estimate the following:
a) Is it possible to have 250,000hours yearly output?
b) Evaluate the project at full data, 10% reducing in the fixed cost, 10% reducing
in the variable cost, 10% reducing in the cost as all & 10% reducing in the unit
c) At 10% interest & 20years period live estimate the present (current) worth value
of that office.