Answer:
Total cost for Corporate = $5,729,015
Total cost for Government = $6,720,985
Explanation:
The computation of Fixed and Variable of corporate and government is given below:-
Fixed cost allocated for Corporate = Fixed computer costs × Number of consultant of Corporate ÷ Total number of consultant
= $9,950,000 × 125 ÷ (125 + 175)
= $9,950,000 × 125 ÷ 300
= $4,145,833
Fixed cost allocated for Government = Fixed computer costs × Number of consultant of Government ÷ Total number of consultant
= $9,950,000 × 175 ÷ (125 + 175)
= $9,950,000 × 175 ÷ 300
= $5,804,167
Variable cost = Total cost - Fixed cost
= $12,450,000 - $9,950,000
= $2,500,000
Variable cost allocated for Corporate = Variable cost × Gigabytes of Storage for Corporate ÷ Total Number of Gigabytes of Storage
= $2,500,000 × 104,300 ÷ (104,300 + 60,400)
= $2,500,000 × 104,300 ÷ 164,700
= $1,583,182
Variable cost allocated for Government = Variable cost × Gigabytes of Storage for Government ÷ Total Number of Gigabytes of Storage
= $2,500,000 × 60,400 ÷ (104,300 + 60,400)
= $2,500,000 × 60,400 ÷ 164,700
= $916,818
Total cost for Corporate = $4,145,833 + $1,583,182
= $5,729,015
Total cost for Government = $5,804,167 + $916,818
= $6,720,985
