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-Dominant- [34]
3 years ago
6

What are the expected average quarterly costs of running a consulting practice if fixed costs are expected to be $5,300 a month

and variable costs are expected to be $130 per client for each quarter? Expected number of clients for the year are:
Jan-Mar 110

Apr-Jun 140

Jul-Sep 150

Oct-Dec 100
Business
1 answer:
zimovet [89]3 years ago
4 0

Answer: Expected average quarterly costs is $32,150.

Explanation:

Given that,

Fixed cost = $5,300 a month

Variable costs are expected to be $130 per client for each quarter.

Total Annual Cost = Fixed Cost + Variable cost

= $5,300 × 12 + (110 + 140 + 150 + 100) × $130

= 63600 + 65000

= $128600

Expected average quarterly costs = \frac{Total annual cost}{quarter}

=  \frac{128600}{4}

= $32,150

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