YSL Marketing Research is a small firm located in Seattle, Washington. On behalf of its clients, the firm conducts focus group meetings, telephone and mail opinion surveys, and evaluations of marketing strategies. The firm has three partners and six nonpartner professionals. At the start of the year, the company estimated total professional compensation (for the three partners and six nonpartner professionals) to be $1,600,000.To evaluate the profitability of its engagements, the firm traces actual professional compensation to each engagement along with so-called direct charges. Direct charges consist of travel costs and costs of conducting surveys (e.g., paper and postage). In addition, each engagement receives an allocation of overhead based on professional compensation charges. Overhead consists of all support costs including rent, utilities, and depreciation of office equipment. At the start of the year, these costs were estimated to be $496,000.Recently, Connie Bachmann, a YSL partner, was asked to conduct a survey for Surenex, a new high-tech company. Connie is excited about this opportunity since she expects that this hot small company will, in three to five years, become a hot big company with premium billing opportunities. At this point, however, Connie wants to quote a low fee since Surenex has cash-flow problems and is clearly unwilling to pay YSL’s normal rates. On most jobs, YSL’s fee is 1.5 times professional compensation. In addition, the company is reimbursed for all out-of-pocket costs related to travel and paper and postage costs for surveys. YSL is in high demand, and if it undertakes the Surenex job, it will have to turn down another potential client.Connie estimates that the Surenex engagement will require the following costs in addition to overhead support costs:Connie Bachmann (partner), 40 hours at a salary averaging $120 per hour = $4,800.Ambrose Bundy (professional staff), 100 hours at a salary of $40 per hour = $4,000.Direct charges for actual travel, mailing, and postage = $3,000.Total of above = $11,800.Requireda. Calculate the expected full cost of the Surenex engagement, including an allocation of overhead. Round answer to nearest dollar and predetermined overhead rate to two decimal places.b. What is the lowest amount that Connie can bill on this engagement without hurting company profit?c. In deciding on a price for the engagement, what should Connie consider in addition to the amount calculated in (b)? (Jiambalvo 82-83)

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more