company’s revenue-costs and profit

company’s revenue-costs and profit

Medfin Accounting Company (MAC) specializes in providing accounting and tax services for medical establishment and professionals. Presently, the company’s production method is highly labor-intensive because many of the book keeping tasks is done manually. MAC employs 50 workers (L) paying them each, on average, $50,000 per year. MAC also has 40 computers (K). The company has leased these computers along with their accompanying software packages at $5,000 per year each. Presently the firm provides accounting and tax services to 150 clients.

d. Assuming that the firm wants to serve the same number of clients, how would the changes that you might be suggesting would affect the company’s revenue, costs, and profit?

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