Question

You are an accountant doing an audit for a law firm. A paralegal worked for a client for 5 hours per day for 3 days. The client was billed $50 per hour, and the paralegal was paid $30 per hour. After the paralegal’s wages were paid, what was the amount made by the law firm?

Answer 1

Total hours worked = 5 x 3 = 15 hours

Amount collected = 50 x 15 = $750
Amount paid to the paralegal = 30 x 15 = $450
Amount made by the firm = 750 - 450 = $300

Answer 2

The amount was made by the firm is $ 300.

Explanation:

Given,

The paralegal worked for a client for 5 hours per day for 3 days,

So, the total number of hours for which the client paid = 5 × 3 = 15 hours,

Now, the client was billed $50 per hour,

Thus, the total amount paid by client = 15 × 50 = $ 750,

The paralegal was paid $30 per hour.

The amount paid to paralegal = 15 × 30 = $ 450,

Hence, the amount made by the law firm = The total amount paid by client - The amount paid to paralegal

= $ 750 - $ 450

= $ 300