Graber and Johnson, Attorneys at Law, recently opened a law practice in the Northwest. Their goal is to generate a monthly net income of $10,000. They have initially set their billing rate at $150 per hour. Their billable hours in the first month of operations (January) were 150 and in the second month of operations (February) were 175 billable hours. The costs incurred at these levels for January and February are given below. 150 billable hours 175 billable hours Salaries: Mr. Graber Ms. Johnson Legal Secretary Depreciation (Furniture) Supplies Rent Utilities Total cost $10,000.00 10,000.00 4,000.00 500.00 450.00 1,000.00 412.00 $26,362.00 $10,000.00 10,000.00 4,000.00 500.00 525.00 1,000.00 449.50 $26,474.50
Graber and Johnson, Attorneys at Law, recently opened a law practice in the Northwest. Their goal is to generate a monthly net income of $10,000. They have initially set their billing rate at $150 per hour. Their billable hours in the first month of operations (January) were 150 and in the second month of operations (February) were 175 billable hours. The costs incurred at these levels for January and February are given below. 150 billable hours 175 billable hours Salaries: Mr. Graber Ms. Johnson Legal Secretary Depreciation (Furniture) Supplies Rent Utilities Total cost $10,000.00 10,000.00 4,000.00 500.00 450.00 1,000.00 412.00 $26,362.00 $10,000.00 10,000.00 4,000.00 500.00 525.00 1,000.00 449.50 $26,474.50
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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