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An accounting firm is considering dropping a client who paid $105,000 in audit fees, butcost $120,000, including billable employee time ($90,000), supplies and copying($4,000), client-specific
An accounting firm is considering dropping a client who paid $105,000 in audit fees, butcost $120,000, including billable employee time ($90,000), supplies and copying($4,000), client-specific fixed expenses such as travel and entertainment ($6,000) and ashare of the allocated corporate expenses ($20,000). How much will profit increase/decrease if the client is dropped
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