Computer Consultants provides computerized inventory consulting. The office and computer expenses are \($800,000\) annually and are not assigned to specific jobs. The consulting hours available for the year total 20,000, and the average consulting hour has \($25\) of variable costs.

Required

a. If the company desires a profit of \($150,000\), what should it charge per hour?

b. What is the markup on variable costs if the desired profit is $200,000?

c. If the desired profit is \($75,000\), what is the markup on variable costs to cover (1) unassigned costs and (2) desired profit?