Daniels Consulting provides consulting service at an average price of $120 per hour and incurs variable cost of $60 per hour. Assume average fixed cost are $3900 a month.

Requirements

1. What is the number of hours that must be built to reach the break even point?

2. If Daniels desires to make a profit of $4500, how many consulting hours must be completed?

3. Daniels thinks it can reduce fixed costs to $3190 per month, but variable costs will increase to $62 per hour. What is the new break even point in hours?

Answer rating: 100% (QA)

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