An accounting firm reports the following budget for the year (in $): 400,000 revenue 200,000 professional labor costs (direct costs) 100,000 support costs (indirect costs) 100,000 income A client has asked for a bid price for an audit engagement. The executives at the accounting firm estimate that the engagement would have professional labor costs of $50,000.

What should the accounting firm charge if the firm wants to earn the usual profit margin? a. 12,500 b. 50,000 c. 75,000 d. 100,000 e. 125,000 f. 150,000