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Account Analysis. Kaur, Inc., would like to estimate costs associated with its clients on an annual basis. Assume costs for supplies and advertising staff are

Account Analysis. Kaur, Inc., would like to estimate costs associated with its clients on an annual basis. Assume costs for supplies and advertising staff are variable costs. The accounting records indicate the following costs were incurred last year for 100 clients: Account Analysis. Kaur, Inc., would like to estimate costs associated with its clients on an
annual basis. Assume costs for supplies and advertising staff are variable costs. The accounting
records indicate the following costs were incurred last year for 100 clients:
Required:
a. Use account analysis to estimate the total fixed cost per year and the variable cost per client.
State your results in the cost equation form Y=f+vx by filling in the dollar amounts for f and
v.
b. Estimate the total costs for this coming year assuming 120 clients will be served.
Supplies $40,000
Advertising staff (hourly employees) $340,000
Manager salary $90,000
Building Rental $70,000
Required:
Use account analysis to estimate the total fixed cost per year and the variable cost per client. State your results in the cost equation form Y = f + vX by filling in the dollar amounts for f and v.
Estimate the total costs for this coming year assuming 120 clients will be served.
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