Question Details

(Solution Download) Steven Clark and two of his colleagues are considering opening a law office in a large metropolitan


 

 

 

 

 

 

 

 

 

 

Steven Clark and two of his colleagues are considering opening a

 

law office in a large metropolitan area that would make inexpensive

 

legal services available to those who could not otherwise afford

 

services. The intent is to provide easy access for their clients by

 

having the office open 360 days per year, 16 hours each day from

 

7:00 a.m. to 11:00 p.m. The office would be staffed by a lawyer,

 

paralegal, legal secretary, and clerk-receptionist for each of the

 

two eight-hour shifts.

 

 

     In order to determine the

 

feasibility of the project, Clark hired a marketing consultant to

 

assist with market projections. The results of this study show that

 

if the firm spends $1,055,000 on advertising the first year, the

 

number of new clients expected each day will be 65. Clark and his

 

associates believe this number is reasonable and are prepared to

 

spend the $1,055,000 on advertising. Other pertinent information

 

about the operation of the office follows:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ac??c

 

The only charge to each new client would be $75 for the initial

 

consultation. All cases that warrant further legal work will be

 

accepted on a contingency basis with the firm earning 30 percent of

 

any favorable settlements or judgments. Clark estimates that 20

 

percent of new client consultations will result in favorable

 

settlements or judgments averaging $5,500 each. It is not expected

 

that there will be repeat clients during the first year of

 

operations.

 

Ac??c

 

The hourly wages of the staff are projected to be $65 for the

 

lawyer, $55 for the paralegal, $45 for the legal secretary, and $35

 

for the clerk-receptionist. Fringe benefit expense will be 40

 

percent of the wages paid. A total of 700 hours of overtime is

 

expected for the year; this will be divided equally between the

 

legal secretary and the clerk-receptionist positions. Overtime will

 

be paid at one and one-half times the regular wage, and the fringe

 

benefit expense will apply to the full wage.

 

Ac??c

 

Clark has located 6,000 square feet of suitable office space

 

which rents for $71 per square foot annually. Associated expenses

 

will be $61,500 for property insurance and $86,000 for

 

utilities.

 

Ac??c

 

It will be necessary for the group to purchase malpractice

 

insurance, which is expected to cost $375,000 annually.

 

Ac??c

 

The initial investment in the office equipment will be $135,000.

 

This equipment has an estimated useful life of four years.

 

Ac??c

 

The cost of office supplies has been estimated to be $9 per

 

expected new client consultation.

 

 


 

 

 

 

 

 

 

 

Required:

 

 

 

 

 

 

 

 

 

1.

 

Determine how many new clients must visit the law office being

 

considered by Steven Clark and his colleagues in order for the

 

venture to break even during its first year of operations.

 

(Do not round intermediate calculations and round your

 

final answer up to nearest whole number.)

 

 

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2.

 

Compute the law firmAc??cs safety margin. (Round final

 

answer to the nearest whole dollar amount.)

 

 

  

 

 

 

 

 

 

 

 


Solution details:
STATUS
Answered
QUALITY
Approved
ANSWER RATING

This question was answered on: Dec 08, 2020

PRICE: $15

Solution~000652147653949.zip (25.37 KB)

Buy this answer for only: $15

This attachment is locked

We have a ready expert answer for this paper which you can use for in-depth understanding, research editing or paraphrasing. You can buy it or order for a fresh, original and plagiarism-free solution (Deadline assured. Flexible pricing. TurnItIn Report provided)

Pay using PayPal (No PayPal account Required) or your credit card . All your purchases are securely protected by .
SiteLock

About this Question

STATUS

Answered

QUALITY

Approved

DATE ANSWERED

Dec 08, 2020

EXPERT

Tutor

ANSWER RATING

GET INSTANT HELP/h4>

We have top-notch tutors who can do your essay/homework for you at a reasonable cost and then you can simply use that essay as a template to build your own arguments.

You can also use these solutions:

  • As a reference for in-depth understanding of the subject.
  • As a source of ideas / reasoning for your own research (if properly referenced)
  • For editing and paraphrasing (check your institution's definition of plagiarism and recommended paraphrase).
This we believe is a better way of understanding a problem and makes use of the efficiency of time of the student.

NEW ASSIGNMENT HELP?

Order New Solution. Quick Turnaround

Click on the button below in order to Order for a New, Original and High-Quality Essay Solutions. New orders are original solutions and precise to your writing instruction requirements. Place a New Order using the button below.

WE GUARANTEE, THAT YOUR PAPER WILL BE WRITTEN FROM SCRATCH AND WITHIN A DEADLINE.

Order Now