Rachel Thomas Owns a Law Practice

question 1

Multiple Choice

Rachel Thomas owns a law practice.She wishes to earn an income of $400 000 from the business (ignore tax) .She expects to work 800 hours on clients in the year,if client work develops as expected.The firm incurs the following costs - leases of $1000 per month and salaries of $2000 per month.
How much must Rachel charge per hour,in order to earn her target profit?

• A) $455
• B) $648.50
• C) $211
• D) $549.67

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Definitions:

Allocating Resources

The process of distributing available resources, such as capital, tools, and personnel, to various projects or units within an organization.

Setting Directions

The process of establishing clear goals, visions, or strategies for an individual, team, or organization to follow in order to achieve desired outcomes.

Concurrent Controls

Management techniques used to monitor processes and activities as they occur, allowing adjustments to be made in real time to ensure that objectives are met.

Steering Controls

Mechanisms or systems used to guide or manage the direction and movement of a vehicle or an organization.