Changes to problem 2: part 1 FC s/b $30,000 in total. Note that this will affect all parts of the problem

Breakeven Analysis P2. Park & Morgan, a law firm, is considering opening a legal clinic for middle- and low-income clients. The clinic would bill at a rate of $18 per hour. It would employ law students as paraprofessional help and pay them $9 per hour. Other variable costs are anticipated to be $5.40 per hour, and annual fixed costs are expected to total $27,000. REQUIRED 1. Compute the breakeven point in billable hours. 2. Compute the breakeven point in total billings. 3. BUSINESS APPLICATION Find the new breakeven point in total billings if fixed costs should go up by $2,340. 4. BUSINESS APPLICATION Using the original figures, compute the breakeven point in total billings if the billing rate decreases by Si per hour, other variable costs decrease by $0.40 per hour, and fixed costs go down by $3,600