Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Richard is a computer-savvy millennial. He started his own business of providing computer cleaning and minor repairs to people in the community for $27 per

image text in transcribedimage text in transcribed Richard is a computer-savvy millennial. He started his own business of providing computer cleaning and minor repairs to people in the community for $27 per one-hour session. Other than having to pay $100 per year for a software license that helps him identify the issues on each device, his only other out-of-pocket cost is fuel to transport him to meetings with clients-about $2 per session. Richard would like to make $3,850 so he can pay off his car loan and save for a much-needed trip. (a) Your answer is correct. How many cleaning/repair sessions does Richard need to provide to reach his before-tax profit goal this year? Number of sessions sessions Richard's friend reminds him that he'll have to pay taxes on any income that he earns. If Richard's tax rate is 30%, how many sessions will he need to provide if he still wants to earn after-tax profit of $3,850 ? Number of sessions sessions eTextbook and Media Assistance Usec Attempts: 1 of 3 us (c) Richard is also thinking about paying for local online advertising to grow his business. A one-year ad will cost $400. (c1) How many additional sessions would he need to sell in order to just cover this cost on an before-tax basis? Number of sessions sessions (c2) In your opinion, would this advertising be worth it? The advertising cost worth it

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions