Question: Computer Consultants provides computerized inventory consulting. The office and computer expenses are ($800,000) annually and are not assigned to specific jobs. The consulting hours available

Computer Consultants provides computerized inventory consulting. The office and computer expenses are $$800,000$ annually and are not assigned to specific jobs. The consulting hours available for the year total 20,000, and the average consulting hour has $$25$ of variable costs.

Required

a. If the company desires a profit of $$150,000$, what should it charge per hour?

b. What is the markup on variable costs if the desired profit is $200,000?

c. If the desired profit is $$75,000$, what is the markup on variable costs to cover (1) unassigned costs and (2) desired profit?

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