Solved

Accurate Accounting Provides Accounting Services at an Average Price of $110

Question 172

Essay

Accurate Accounting provides accounting services at an average price of $110 per hour and incurs variable costs of $60 per hour.Assume average fixed costs are $7,200 a month.(Round your answer to the nearest whole unit.)
1.What is the number of hours that must be billed to reach the breakeven point?
2.If the company desires to make a profit of $3,600,how many hours must be completed?
3.The company thinks it can reduce fixed costs to $6,800,but variable cost will increase to $64 per hour.The price per unit will not change.What is the new breakeven point in hours?

Correct Answer:

verifed

Verified

1.Breakeven = (Fixed costs + Target prof...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents