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?
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