FOR THE FILL IN THE BLANK EQUATION:

Contrubution margin per hour

Contribution margin ratio

fixed costs

Hourly rate

Target profit

Variable costs

Donton Consulting provides consulting service at an average price of $100 per hour and incurs variable cost of $20 per hour. Assume average fixed costs are $4,800 a month. Requirements 1. What is the number of hours that must be billed to reach the breakeven point? 2. If Donton desires to make a profit of $2,000, how many consulting hours must be completed? 3. Donton thinks it can reduce fixed cost to $4,235 per month, but variable cost will increase to $23 per hour. What is the new breakeven point in hours? Requirement 1. What is the number of hours that must be billed to reach the breakeven point? Start by selecting the formula and entering the amounts to compute the breakeven point in hours. (Complete all answer boxes. Enter a "O" for any zero balances.) )/ | | = Required hours billed Requirement 2. If Donton desires to make a profit of $2,000, how many hours must be billed? Donton must bill hours to earn a profit of $2,000. Requirement 3. Donton thinks it can reduce fixed cost to $4,235 per month, but variable cost will increase to $23 per hour. What is the new breakeven point in hours? Donton must bill hours to reach breakeven point when fixed costs are $4,235 and variable costs are $23 per hour