Question - A company bills $70 per hour for accounting services and $140 per hour for tax preparation. Costs for the next year are as followed: Office Supplies-$7,000, Rent-$24,000, Secretary Salary-$45,000, Tax Software-$6,000, Total:$82,000. Thinking of changing his business structure after learning about activity-based costing he develops the following data:

Not wanting to change his accounting billing rate he feels like you can charge more for his tax services. Wanting to make more than $140,000 before taxes next year, what would his billing rate per hour for his tax services need to be to achieve his goal?