Mr. Sunland is exploring options to reduce the annual bookkeeping costs. Option 1: Renegotiate the current...

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Mr. Sunland is exploring options to reduce the annual bookkeeping costs. Option 1: Renegotiate the current contract with the bookkeeping service to pay a flat fee of $10,389 per year plus $1 per customer per month. Option 2: Hire a part-time bookkeeper for $19,596 per year to handle the invoicing and simple accounting. He would need to pay $6,600 per year to have taxes and year-end financial statements prepared. Compare the current bookkeeping cost with the two options at customer levels of 950, 1,510, and 1,586. Current cost Option 1 Option 2 +A +A 950 22,800 11,400.00 LA + LA $ 1,510 36,240 28,509 +A $ 21,789.00 $ 28,509.00 1,586 $ LA +A 38,064 $ 29,421 +A $ 29,421.00 Mr. Sunland is exploring options to reduce the annual bookkeeping costs. Option 1: Renegotiate the current contract with the bookkeeping service to pay a flat fee of $10,389 per year plus $1 per customer per month. Option 2: Hire a part-time bookkeeper for $19,596 per year to handle the invoicing and simple accounting. He would need to pay $6,600 per year to have taxes and year-end financial statements prepared. Compare the current bookkeeping cost with the two options at customer levels of 950, 1,510, and 1,586. Current cost Option 1 Option 2 +A +A 950 22,800 11,400.00 LA + LA $ 1,510 36,240 28,509 +A $ 21,789.00 $ 28,509.00 1,586 $ LA +A 38,064 $ 29,421 +A $ 29,421.00