question archive EBC has two offices, one in northern California and one in southern California
EBC has two offices, one in northern California and one in southern California
Subject:AccountingPrice: Bought3
EBC has two offices, one in northern California and one in southern
California. EBS provides three basic services to its clients: rate
reviews, contract procurement and negotiations, and operational
studies. EBC management wants to determine how many projects of
each service would need to be performed in 2022 to achieve a
before-tax profit of $650,000. EBC managers have gathered the
following information from 2019 for the analysis.
EBC has budgeted 2022 fixed expense to be $2,251,159 and
$644,341 in the northern and southern California offices,
respectively
1. How many projects of each type must EBC perform in the northern
California offices if managers expect the office to generate
$450,000 of the desired total income?
2. How many projects of each type must EBC perform in the
southern California office if managers expect the office to
generate $200,000 of the desired total income?
