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can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing . 1 . 1 . 1 . 2

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can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing . 1 . 1 . 1 . 2 . 1 . 3 . 1 . 4 . 1 . 5 6 . 1 . 7 . 1 . 8 . 1 . 9 . 1 . 10 . 1 . 11 . 1 . 12 . 1 . 13 . 1 . 14 . 1 . 15 . 1 . 16 . 1 . 17 . 1 . 18 . 1 . . . Question-2: John's Bookkeeping and Tax Services provides consulting services to hotels and restaurants. John's charges customers $50 per hour for any work done. John's has five employees. John's pays each employee $50,000 per year and each employee provides 2,000 hours of work per year. Other fixed costs at John's amount to $150,000 per year. Variable costs are $5 per hour. John's expects to provide 9,500 hours of work to its customers in the upcoming year. Prepare a worksheet for a contribution margin income statement, showing per unit and total amounts, to answer each of the following questions. Required a) What is the expected operating profit in the base case scenario above? Contribution Margin Income Statement Per Unit Total Sales $50 VC 5 CM $45 FC OI b) John's believes that if the hourly rate is reduced to $46.00, demand Will jump to 11,000 hours. However, variable cost will increase to $7.00 per hour because the employees will have to be paid overtime in addition to their fixed wage. What is the expected operating profit in this scenario? Contribution Margin Income Statement Per Unit Total Sales $46 VC CM $39 FC Focus E

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