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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 $($before the proposed contract$).$

B$-$YOU

Annual Income Statement

Sales revenue $ $550,000$

Costs

Labor $260,000$

Equipment lease $40,000$

Rent $35,000$

Supplies $27,000$

Officers' salaries $160,000$

Other costs $17,000$

Total costs $ $539,000$

Operating profit $($loss$)$ $ $11,000$

If B$-$You decides to take the contract to help the manager, it will hire a full$-$time consultant at $$85,000.$ The equipment lease will increase by $20$ 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.

c$.$ What considerations, other than costs, do you think are necessary before making this decision?

check all that apply

Whether the contract will provide for more revenues in the future.

Whether this will enable the company to get into a new, profitable line of business.unanswered

What other opportunities the company has for expanding.unanswered

Profitability of the other contracts.unanswered

Current financial position of the company.

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