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Mr. Crane is exploring options to reduce the annual bookkeeping costs. Option 1: Renegotiate the current contract with the bookkeeping service to pay a flat

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Mr. Crane is exploring options to reduce the annual bookkeeping costs. Option 1: Renegotiate the current contract with the bookkeeping service to pay a flat fee of $ 10,479 per year plus $ 1 per customer per month Option 2: Hire a part-time bookkeeper for $ 19,178 per year to handle the invoicing and simple accounting. He would need to pay $6,200 per year to have taxes and year-end financial statements prepared. Compare the current bookkeeping cost with the two options at customer levels of 872, 1,944, and 1,984. 872 1,944 1,984 $ $ $ Current cost $ $ $ Option 1 $ $ $ Option 2

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