Accurate Accounting Provides Accounting Services at an Average Price of $110

question 24

Essay

Accurate Accounting provides accounting services at an average price of $110 per hour and incurs variable costs of $60 per hour.Assume average fixed costs are $7,200 a month.(Round your answer to the nearest whole unit.)
1.What is the number of hours that must be billed to reach the breakeven point?
2.If the company desires to make a profit of $3,600,how many hours must be completed?
3.The company thinks it can reduce fixed costs to $6,800,but variable cost will increase to $64 per hour.The price per unit will not change.What is the new breakeven point in hours?

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Definitions:

Communal Well

A water well that is shared and used by the members of a community.

Comparative Inferences

The process of drawing conclusions based on comparisons between different data points, cases, or situations.

Final Proofs

The last version of a document or publication, reviewed for errors or necessary corrections before printing or distributing.

Comparative Inferences

The act of drawing conclusions by examining the similarities and differences between two or more entities.