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Unformatted text preview: CLK Marketing has been asked to conduct a survey for a new company. The new company is looking for low-fee services. CLK usually charges a rate of 1.5 times the professional compensation plus direct charges. The engagement will require the following costs: Partner services 40 hours x $100 $4,000 Non partner services 100 hours x $30 $3,000 Direct charges $2,000 Total $9,000 Calculate the full cost of the engagement (including the allocation of overhead) What is the opportunity cost of accepting this engagement assuming the new company is willing to pay $100 above cost and another customer with the same requirements is willing to pay the usual fee? Is there any circumstance under which CLK should accept the engagement for the lesser fee?...
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This note was uploaded on 02/13/2010 for the course BUS 214 taught by Professor Violapersia during the Spring '10 term at SUNY Stony Brook.
- Spring '10