Fitch and Hughes P. C. is a small law firm specializing in family law, wills, estates, and trusts. The firm, begun in 1980 by Jason Fitch and George Hughes, currently has three attorneys who are shareholders and three associate attorneys. The firm is managed by George Hughes since the retirement of his co-founder of the firm, Jason Fitch. In early December, Hughes was thinking about the firm’s workload for the first half of next year. The case provides data concerning expected demand, company policies, and compensation rates. Students are asked to complete plans for meeting demand and the costs of those plans.

1. Determine the cost of a plan which uses only overtime and the services of Jason Fitch.

2. Suppose clients pay the same hourly rate regardless of which attorney bills the hours and Hughes is interested in determining the lowest cost plan for the firm. What should Hughes do, given the current policies of the firm?