Managerial Accounting: Continuing Problem P18-34 Haupt Consulting provides consulting service
Managerial Accounting Continuing Problem P18-34 This problem continues the Haupt Consulting, Inc., situation from Problem 17-36 of Chapter 17. Haupt Consulting provides consulting service at an average price of $100 per hour and incurs variable costs of $40 per hour. Assume average fixed costs are $4,000 a month.Requirements: 1. What is the number of hours that must be billed to reach break even? 2. If Haupt desires to make a profit of $5,000, how many lawns must be serviced? 3. Haupt thinks it can reduce fixed costs to $3,000 per month, but variable cost will increase to $42 per hour. What is the new break even in hours?