Saul Goodman represents several clients and bills at $400 per hour. He forgot to record the time it took to complete each activity, but he knows his eight hour day was spent representing three clients involved in one high profile case. He also remembers that Walt told him once that his learning curve percentage was 85%. How much more should Saul bill his first client than his third client?
A)about $267
B)about $292
C)about $303
D)about $280

Question

Quizplus · Accepted Answer

Saul's billing is based on an 85% learning curve, which means each subsequent task takes 85% of the time of the previous task. If the first task took x hours, the second took 0.85x, and the third 0.85^2x. The total time for all tasks is x + 0.85x + 0.72x = 2.57x hours. Given an 8-hour day, x = 8 / 2.57 hours. The difference in billing between the first and third client is (x - 0.72x) hours times $400/hour = 0.28x * $400. Substituting x = 8 / 2.57 gives a difference of about $267.

Saul Goodman Represents Several Clients and Bills at $400 Per