This information applies to the next three questions. CVP Analysis A law firm has provided the following data: Current sales Average billing rate Variable cost 5,500 billable hours $270 per hour $150 per hour Fixed cost $390,000 Assume the effective tax rate for the law firm is 25%. 6. Using the data above, what is the break-even point in billable hours? O A. 1,444 hours O B. 2,600 hours C. 3,250 hours OD. 8,750 hours O E. 10,583 hours 7. What amount of revenue must the law firm generate in order to achieve an after-tax target profit of $30,000? 8. O A. $1,147,500 O B. $918,000 OC. $774,000 O D. $887,500 E. $967,500 What will the new breakeven point be if the law firm increased its billable rate by $5 in order to cover a $10,000 increase in fixed costs? The firm also determined that the rate increase will decrease demand by 10%. OA. 9,800 hours O B. 1,455 hours O C. 2,667 hours OD. 3,200 hours OE. 8,150 hours