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XYZ Payroll Services during present year is around 50,000 worker hours and with present operations covers all customer demand. XYZ Payroll Services is planning on 5% growth rate each year. If we let x= total worker-hours, XYZ Payroll Services will acquire one-time cost of $15x to expand. Each customer serviced acquires variable cost of $3.00 per worker-hour total then XYZ Payroll Services $6.00 per worker - hour of capacity per year. XYZ Payroll Services garners $25 per worker hour from its customers.

Determine the projected revenue, costs, and potential profits would be over next 10 years based on current capacity, 50,000 worker-hours, and expansion to 70,000 worker-hours, and expansion to 90,000 worker-hours?

Project Management, Management Studies

  • Category:- Project Management
  • Reference No.:- M932486

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