Flavor Enterprises has been approached about providing a new service to its clients. The company will bill clients $160 per hour, the related hourly variable and fixed operating costs will be $70 and $18, respectively. If all employees are currently working a full capacity on other client matters and average hourly profit margin is $88, should the company accept this new services or not, use calculation support your answer.

Flavor Enterprises has been approached about providing a new service to its clients. The company will bill clients $160 per hour, the related hourly variable and fixed operating costs will be $70 and $18, respectively. If all employees are currently working a full capacity on other client matters and average hourly profit margin is $88, should the company accept this new services or not, use calculation support your answer.

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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