preview

Case Study Counter Intelligence-Az

Satisfactory Essays
The 2020 design desktop software provides three choices to purchase. The first option is the 2020 design essentials which costs $1845 for the program and one-year license. $650 are required to renew the license. The first option only provides basic catalog access. The second option, for Counter Intelligence-AZ, is the 2020 design complete for $2995. The second option includes full access to the cabinet catalogs as well as basic catalogs. There remains the $650 fee for the one-year renewal regardless of which option is chosen. The last option is 2020 design complete and closet for $3490 which include all the complete option and closet design catalog access. The good news for Counter Intelligence-AZ is they maintain the hardware needed to operate…show more content…
The average net income per contract for Counter Intelligence-AZ remains at $750. If Counter Intelligence were to invest in the new program the net income should increase from $3,000 to $3,750 per month. This would increase Counter Intelligence-AZ’s annual net income from $36,000 to $45,000; however, the initial cost for the 2020 design essentials program will be $1,845 for the first year and $650 for subsequent years. This would put Counter Intelligence-AZ’s net annual income to $36,000 plus $11,000 and minus $1,845 of initial investment for a total net operating income of $43,155 for the first year. The second year would have an operating income of $45,000 minus the programs annual user fee of $650 to a total annual net operating income of $44,350. This program would have a return on investment for the first year of $11,000 minus $1,845 for a total of $9,155, or a 25.43% return on investment for the first year. The subsequent years would have a greater return on investment of 28.75%. As previously discussed in this paper, the reason why simply hiring more employees will not solve the inefficacies of the
Get Access