Forester and Cohen is a small accounting firm, managed by Joseph Cohen since the retirement in December
Question:
Month Estimate of Billable Hours
Jan............. 600
Feb............. 500
Mar............. 1,000
Apr............. 1,200
May............ 650
June............ 590
Cohen has an agreement with Forrester, his former partner, to help out during the busy tax season, if needed, for an hourly fee of $125. Cohen will not even consider laying off one off his colleagues in the case of a slow economy. He could, however, hire another CPA at the same salary, as business dictates.
(a) Develop an aggregate plan for the 6-month period.
(b) Compute the cost of Cohen’s plan of using overtime and Forrester.
(c) Should the firm remain as is, with a total of 4 CPAs?
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