• Bright Ideas Marketing wants to estimate its annual costs associated with clients. Assume costs for promotional materials and marketing staff are variable costs.
• Data from last year (85 clients):
  • Promotional materials: $16,000
  • Marketing staff wages: $130,000
  • Manager salary: $90,000
  • Office rent: $38,000
• Required:
  • Use account analysis to estimate total fixed costs per year and the variable cost per unit. Provide the cost equation in the form Y = f + vX.
  • Calculate the estimated costs for next year assuming 105 clients will be served.