Question: Reconsider the law firm of Exercise 5 1 Assume the prevailing

Reconsider the law firm of Exercise 5.1. Assume the prevailing revenues per shopping and medical projects are $ 4000 and $ 5000 per project, respectively, and that out of pocket expenses associated with each project are negligible. The (fixed) cost of operating the office is $ 500,000 per month.
a. What type of project is the most profitable?
b. At the current product mix (50%- 50%), how much contribution margin is generated ($ per day)?
c. At the current product mix, what is the profit at capacity?
d. At the current product mix, what is the value of hiring an extra Paralegal?

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  • CreatedNovember 06, 2015
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