Chicago Consulting Group, which uses an activity-based costing (ABC) system, offers a softwaretraining seminar to companies for $12,000 per seminar for 100 students; unit-level activities cost $30 per student; and facility costs total $180,000 per year. Additional data follow:

" __Batch-level activities are $2,500 per seminar (travel, etc.).

\ Product-level activities consist of 1,000 product maintenance hours per year to keep the seminar up to date at $75 per hour.

Required In small groups, complete the following:

a. FromanABC perspective, identify one problem associated with the basic cost-volume-profit model.

b. Compute Chicago Consulting Group’s operating income before tax considering the costs in the preceding bulleted list, ase an oe 100 seminars per year