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There is a Part B and C to this question... but I am having so much trouble with Part A I cant get there. Please

help. And can you work it out by chance because I have 10 more questions very similar to this with Part A B and C. Thank you!!



Morris Inc. is a management consulting firm that specializes in management training programs. Tackle Manufacturing Inc. has approached Morris to contract for management training for a one-year period. Last year's income statement for Morris is as follows:


 

 Sales Revenue    $360,000 Costs:       Labor$120,000     Equipment Lease 12,000     Rent 24,000     Utilities 8,400     Supplies 23,600     Other Costs 14,400     Manager's Salary 80,000     Total Costs     282,400 Operating Profit (Loss)    $77,600 


To satisfy the Tackle contract, another part-time trainer will need to be hired at $42,000. Supplies will increase by 12% and other costs will increase by 15%. In addition, new equipment will need to be leased at a cost of $2,500.


a. What are the differential costs that would be incurred if the Tackle contract is signed?

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