Goldfish Enterprises costs for selling 15,000 hours of consultancy services are 345,000 and costs for 7,000 hours

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Goldfish Enterprises’ costs for selling 15,000 hours of consultancy services are £345,000 and costs for 7,000 hours are £185,000. The company wishes to estimate its fixed and variable costs.

• What are the fixed and variable costs for Goldfish?

• What is the principal assumption behind your calculation?

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