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31 August, 06:34

An architecture firm charges clients $250 per hour for their services, and they pay their architects an average of $175 per hour. They expect to accumulate 10,000 hours of architecture work this year. Their other costs include marketing and general administrative costs totaling $615,000 per year. What is the firm's profit before taxes? A) $135,000 B) $140,000 C) $115,000 D) $615,000 E) $750,000

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  1. 31 August, 09:00
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    A) $135,000

    Explanation:

    service fee 250

    average wage 175

    contribution 75 this is the ammount generate per hour billed

    expected hours billed for the year 10,000

    hours x contribution per hour = total contribution

    10,000 x 75 = 750,000

    Operating cost (615,000)

    Earnings before taxes 135,000
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