This problem continues the Daniels Consulting situation from Problem P19 44
This problem continues the Daniels Consulting situation from Problem P19 44
This problem continues the Daniels Consulting situation from Problem P19-44 of Chapter 19. Daniels Consulting provides consulting service at an average price of $120 per hour and incurs variable cost of $60 per hour. Assume average fixed costs are $3,900 a month.
In Problem
Requirements
1. What is the number of hours that must be billed to reach the breakeven point?
2. If Daniels desires to make a profit of $4,500, how many consulting hours must be completed?
3. Daniels thinks it can reduce fixed cost to $3,190 per month, but variable cost will increase to $62 per hour. What is the new breakeven point in hours?