10. Personal Planners provides financial advice to their clients on invest- ment, retirement planning, and tax management. Based on last year's client list of 100 clients, the cost of providing retirement planning is $594 per client, itemized as follows: Textbook: Personal Financial Planning (Ho & Robinson) $ 57 Photocopying 10 Advisor's time (2 hours @ $90) 180 Computer simulation fee 50 Direct costs $297 Overhead (100% of direct costs) 297 Total $594 The 100% markup to cover overheads is typical in this business. Overhead is thought to consist of 40% variable costs and 60% fixed costs. Professor Robinson (himself the author of the textbook and a very smart person) has offered to service all the clients with retire- ment planning (bul not investment advice of tax planning) for a fee. This would include not only his time but also the textbook, the pho- Locopying, and the computer simulation fee. Required (a) If Robinson's fee is $500 per client, should the offer be accepled? If Robinson's fee is a lump sum of $50,000, for which he would provide advice for up to 120 clients, should the offer be accepted? (6)