A Firm Is Considering Adding a Second Secretary to Answer

question 168

Essay

A firm is considering adding a second secretary to answer phone calls and make appointments. The cost of the secretary will be $15/hour and she will work 200 hours each month. If each new client adds $800 of profit to the firm, how many clients must the secretary arrange for the firm to break even?

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Definitions:

Accounts Receivable

Represents money owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Subsequent Assignment

The act of transferring rights or obligations to another party after the original assignment has already taken place.

Superior Rights

Legal or contractual rights that have precedence or higher priority over others in a specific situation.

Majority

A term used to describe persons who have reached the legal age of adulthood.