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The managing partner at Dorothy's Accounting Service typically hires one part-time intern to complete her clients' basic tax returns. Dorothy expects her intern to complete
The managing partner at Dorothy's Accounting Service typically hires one part-time intern to complete her clients' basic tax returns. Dorothy expects her intern to complete 300 of these basic returns, estimating each one to take 30 minutes of the intern's time. Dorothy pays her intern $30/hour and incurs additional variable overhead costs of $16/hour associated with the resources that are needed behind the scenes for these jobs. What cost of services should Dorothy budget for all basic tax returns this season, and how much should she charge each client if she wants to earn 50% gross margin on each of these returns? (Round sales price per unit to 2 decimal places, e.g. 15.25.) Cost of services Sales price per unit per unit
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