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a.	Calculate the expected full cost of the Surenex engagement for YSL Marketing Research:
	Step 1, calculate the Overhead (O/H) rate (based on annual totals):
	Annual Overhead (rent, utilities, equip deprec'n)		Notice that these are all fixed costs
	Annual Total Prof. Compensation (base for rate)		See first paragraph.
	Overhead rate		O/H rate = O/H$ / Allocation base $
	Step 2, calculate cost for Surenex engagement
	Labor (Connie + Ambrose)
	Overhead (O/H rate x labor $)
	Direct Charges (travel, mail, etc)
	Total
b.	What is the lowest amount Connie can bill without hurting company profit?
	Step 1, determine the incremental cost only
	Labor (Connie + Ambrose)
	Direct Charges (travel, mail, etc)
	Total
	Step 2, determine the opportunity cost (sales given up)
	Labor (Connie + Ambrose)
	Price (above labor times 1.5x billing rate):		Note that labor and overhead and profit are covered in this billing rate.
	plus direct charges
	Total "Opportunity cost" (other sales option)		Note: this is the normal price that would have been charged to Surenex or any company for the same size of job.
	Answer: the larger of these two amounts:		is the lowest amount to bill without "hurting" company profits
c.	In deciding a price, what else should Connie consider in addition to the amount from "b.".
	Hint: this is not a calculation, read what was said about Surenex. Training from your Marketing class comes in here.

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