Mr. Pharoah 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 $10,482 per year plus $1 per customer per month. Option 2: Hire a part-time bookkeeper for $18,648 per year to handle the invoicing and simple accounting. He would need to pay $6,300 per year to have taxes and year-end financial statements prepared. Compare the current bookkeeping cost with the two options at customer levels of 892, 1,210, and 1,282. 892 1,210 1,282 $ $ $ Current cost $ $ Option 1 $ $ $ $ Option 2