Question
A consulting firm offers two types of services: basic consulting and premium consulting. The firm incurs both fixed and variable costs in delivering these services.
A consulting firm offers two types of services: basic consulting and premium consulting. The firm incurs both fixed and variable costs in delivering these services. The fixed costs, including office rent and salaries, amount to $50,000 per month. The variable costs per hour of consulting service provided average $100 for basic consulting and $200 for premium consulting. If the firm aims to achieve a target profit of $30,000 per month and the selling prices per hour are $200 for basic consulting and $400 for premium consulting, calculate the number of hours of each type of service it needs to provide and the total revenue required to reach the target profit.
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