ABC Staffing Company has been traditionally focused on legal and accounting staffing and is dterming if it should start an IT staffing decisions. ABC believes they will incur additional fixed costs of $225,000 for advertising and management of the new division. They belive that they can charge $70.00 per hour while paying the employee just $30.00 per hour and will incur an additional $20.00 per hour for variable overhead costs.
1.How many hours will abc staffing employees have to work for the new division to break even?
2.What will the totaly revenue be at the breakeven point?
3.How many hours will ABC staffing employess have to work for the new division to earn a profit of $100,000?
4. If ABC staffing believes it can charge $80 per hour instead of $70, how many hours would they have to work to earn a profit of $100,000?