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Breaksit is a consulting firm providing financial consulting services to its clients. The following information is given relating to its operations:               Consultancy fees per client                $95             Variable expenses per client              $42             Fixed overheads                                 $318,000               The company targets a net income of at least $190,800 for the forthcoming year.               REQUIRED: Calculate the number of clients Breaksit must service to generate the target income.

Breaksit is a consulting firm providing financial consulting services to its clients. The following information is given relating to its operations:               Consultancy fees per client                $95             Variable expenses per client              $42             Fixed overheads                                 $318,000               The company targets a net income of at least $190,800 for the forthcoming year.               REQUIRED: Calculate the number of clients Breaksit must service to generate the target income.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Breaksit is a consulting firm providing financial consulting services to its clients. The following information is given relating to its operations:

 

            Consultancy fees per client                $95

            Variable expenses per client              $42

            Fixed overheads                                 $318,000

 

            The company targets a net income of at least $190,800 for the forthcoming year.

 

            REQUIRED: Calculate the number of clients Breaksit must service to generate the target income.       

 

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