Staff accountant hours: 1500 Manager hours: 200 Partner hours: 100 Other out

Staff accountant hours: 1500
Manager hours: 200
Partner hours: 100
Other out-of-pocket costs: $10000 a. If the firm normally marks up nonlabor costs by 20% to arrive at the client fee what should the bid price be?
b.Using the information available to you compute the actual out-of-pocket cost to the CPA firm to complete this audit. Out of pocket costs do not include any
profit built into the client billing rate.
c. Using your answer in B what is the lowest price the CPA firm could charge and not lose money?
d. If Tanner Inc. rejects the bid and states that it will pay no more than $100000 for the audit what are the options open to the CPA firm?