Costs for Last Year (115 clients)	Amount ($)
Advertising materials	20,000
Advertising staff wages	150,000
Manager salary	100,000
Building rent	53,000

• Context: ProAd Agency needs to estimate annual costs associated with its clients. Assume costs for advertising materials and staff are variable costs.
• Required:
  • a. 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.

b. Estimate the total costs for next year assuming 135 clients will be served.