Determine the projected revenue and costs


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?

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Project Management: Determine the projected revenue and costs
Reference No:- TGS032486

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