Jenny Lane is considering how best to charge her clients for her accounting services.She incurs costs of $12 000 in staff costs per month,and expects her business to bill 500 hours per month.She also pays rent of $48 000 per year,and her administrative fixed costs total $8000 per month.Jenny desires a profit of $240 000 per year (not including taxes).
Required:
A.What is the minimum rate Jenny must bill her clients per hour to avoid making a loss?
B.What must Jenny bill her clients per hour in order to earn her target profit?

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The Answer of Jenny Lane is considering how best to charge her clients for her accounting services.She incurs costs of $12 000 in staff costs per month,and expects her business to bill 500 hours per month.She also pays rent of $48 000 per year,and her administrative fixed costs total $8000 per month.Jenny desires a profit of $240 000 per year (not including taxes).
Required:
A.What is the minimum rate Jenny must bill her clients per hour to avoid making a loss?
B.What must Jenny bill her clients per hour in order to earn her target profit?

Jenny Lane Is Considering How Best to Charge Her Clients