Using ABM in a service company Refer to Short Exercise S19-10. Atlantic desires a 25% target…

Using ABM in a service company Refer to Short Exercise S19-10. Atlantic desires a 25% target operating income after covering all costs. Considering the total costs assigned to the Client 76 job in Short Exercise S19-10, what would Atlantic have to charge the customer to achieve that operating income? Round to two decimal places.

Exercise S19-10

Using ABM in a service company Atlantic Company is a management consulting firm. The company expects to incur $150,000 of indirect costs this year. Indirect costs are allocated based on the following activities:

Atlantic bills clients at 140% of the direct labor costs. The company has estimated direct labor costs at $250 per hour. Last month, Atlantic completed a consulting job for Client 76 and used the following resources:

Determine the total cost of the consulting job and the operating income earned.

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