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Calculate the cost of spare capacity

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Question - Itemized accounting services prepares tax returns for clients. The firm employs six bookkeepers who cost the firm $10,000 in total each week. Each bookkeeper is expected to charge 30 hours per week to client jobs. At the end of the week the total hours charged by the six bookkeepers to client jobs is 150. Calculate the cost of spare capacity?

a. $30

b. $150

c. $1668

d. $5555

Reference no: EM132620814

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