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

Question

Business

Amanda Cox

27 July, 06:52

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

+5

Answers (1)

Know the Answer?

Lee Stout · Answer 1

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