Enterprise Tax Services (ETS)provides tax planning.The company billed 5,000 hours at $100 per hour for the year just completed.ETS,in planning next year's operations,is focusing on increasing the company's share of the market.It proposes to do that by lowering its billing rate by 20% and hiring more tax specialists.ETS estimates that revenues generated from existing staff would increase by 40% as a result of the new billing policy and that the additional specialists will provide additional billings of 3,000 hours (at the reduced rate)during the coming year.
Required: Compute the budgeted revenue amount for next year based on ETS's plans and projections.

Question

Quizplus · Accepted Answer

Feedback: 1.1.40 x (5,000 x $100)= $700,000
2.$700,000 + (3,000 x [80% x $100])= $940,000 budgeted revenue

Enterprise Tax Services (ETS)provides Tax Planning