This problem continues the Haupt Consulting, Inc., situation from Problem 17-36 of Chapt...

This problem continues the Haupt Consulting, Inc., situation from Problem 17-36 of Chapter 17. Haupt Consulting provides consulting service at an average price of $100 per hour and incurs variable cost of $40 per hour. Assume average fixed cost are $4,000 a month.

Requirements

1. What is the number of hours that must be billed to reach break even?

2. If Haupt desires to make a profit of $5,000, how many lawns must be serviced?

3. Haupt thinks it can reduce fixed cost to $3,000 per month, but variable cost will increase to $42 per hour. What is the new break even in hours?