Tom's Tax Services is a small accounting firm that offers tax services to small businesses and individuals. A local store owner has approached Tom about doing his taxes but concerned about the fees Tom normally charges. The costs and revenues at Tom's Tax Services follow: TOM'S TAX SERVICES Annual Income Statement $ 736,000 Sales revenue Costs Labor Equipment lease Rent Supplies Tom's salary Other costs 470,000 48,500 41,800 31,900 73,400 21,000 S 686,600 49,400 Total costs Operating profit (loss) If Tom gets the store's business, he will incur an additional $58,300 in labor costs. Tom also estimates that he will have to increase equipment leases by about 10 percent, supplies by 5 percent, and other costs by 10 percent. Required a. What are the differential costs that would be incurred as a result of adding this new client? Total costs 0 b. Tom would normally charge about $73,700 in fees for the services the store would require. How much could he offer to charge and still not lose money on this client? Reduce the fees