Steven Kissick is a Kingston$-$based lawyer who has been in practice for several years. He knew

that it would take some time to establish himself and hopefully generate enough revenue to make

a decent living. His financial statements for his year ended June $30,2018,$ are as follows:

Steven Kissick, Lawyer

Income Statement

For the year ended June $30,2018$

Revenue $$180,000$

Direct costs of practice:

Variable $66,000$

Fixed $88,000$

Gross margin $26,000$

Indirect costs of practice:

Variable $17,500$

Fixed $110,000$

Operating income$/($loss$)(101,500)$

Income tax $(27\mathrm{.}5\%)0$

Net loss $$(101,500)$

Required:

$1.$ How much revenue must Kissick generate to break even?

$2.$ How much revenue must Kissick generate to generate after$-$tax income of $$150,000?$

$3.$ If his billing rate is $$350$ per hour, is the answer for Requirement $2$ reasonable? Why or

why not?