You Are Trying to Estimate the Annual Cost of Setting

Multiple Choice

You are trying to estimate the annual cost of setting up a branch of an engineering consulting business in Vancouver, based on your experience of running the original business in Halifax. The original business employs 80 engineers, whereas the Vancouver branch will initially employ 15. On the other hand, Vancouver salaries are typically 50% higher than those paid in Halifax. If the annual salary bill for the Halifax office is $9 000 000, give an order of magnitude estimate for the salary bill of the Vancouver office.

A) $844 000
B) $1 687 000
C) $2 400 000
D) $2 530 000
E) $2 953 000