Problem $3-67($Algo$)$ Extensions of the CVP Model$-$Taxes $($LO $3-4)$

Ford Legal Services $($FLS$)$ is considering adding a new line of simplified wills and estate plans to its current family law

practice. This new service will target individuals who are currently not clients and whose legal needs are modest, but who

prefer to have their wills and estate plans personally drafted. FLS estimates the follow prices and costs for the new service.

Client fee

Variable cost per client

Fixed costs per year associated with this product

Income tax rate

Required:

a$.$ Compute Ford Legal Service's break$-$even point in clients per year for this new service.

b$.$ How many clients must Ford Legal Services attract to earn $$87,750$ per year after taxes for this new service?

Complete this question by entering your answers in the tabs below.

Required A

Required B

Compute Ford Legal Service's break$-$even point in clients per year for this new service.

Note: Round up your answers to the nearest whole number.