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

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:

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

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