XYZ Company, LLC, plans to offer professional marketing services to engineers and scientists who have developed new technology they wish to bring to market. XYZ expects to have an average payroll cost per hour of $51.50 and monthly fixed costs of $3,450.

1. How much per hour should XYZ charge its customers if it wishes to achieve a 55% margin?

2. How much per hour should XYZ charge its customers if it wishes to achieve a 65% margin?

3. If XYZ feels it can charge its customers no more than $135 per hour, and it wants to maintain a margin of 65%, to what amount does XYZ need to reduce its average payroll cost per hour?

4. Considering the price and variable cost from Q#3, how many hours of marketing services must XYZ sell each month in order to breakeven?

5. Suppose XYZ wishes to make a profit of $12,500 per month at a price of $135 per hour and a margin of 70%. How many hours of marketing services does XYZ need to sell per month?