Costs Incurred (70 clients)	Amount ($)
Advertising materials	12,000
Creative staff wages	110,000
Manager salary	80,000
Office rent	35,000

• Context: Visionary Advertising wants to estimate annual costs associated with its clients. Assume costs for advertising materials and creative staff are variable costs.
• Required:
  • Use account analysis to estimate total fixed costs per year and the variable cost per unit. State your results in the cost equation form Y = f + vX.
  • Estimate the total costs for next year assuming 90 clients will be served.