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Davis provides consulting services at an average price of $175.00 per hour, and incurrs variable cost of $100.00 per hour, Assume that average fixed costs
Davis provides consulting services at an average price of $175.00 per hour, and incurrs variable cost of $100.00 per hour, Assume that average fixed costs are 5,250.per month.
1. What is the number of hours that must be billed to reach the breakeven point? 2. If they desire to make a profit of 3,000.how many consulting hours must be completed? 3. Davis thinks it can reduce fixed costs to to 3,990.per month, but variable costs will increaseto $105.00 per hour. What is the new breakeven point in hours?
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