• Dynamic PR Agency would like to estimate costs associated with its clients on an annual basis. Assume costs for campaign supplies and PR staff are variable costs.
• Last Year's Costs for 120 Clients:
  • Campaign supplies: $25,000
  • PR staff wages (hourly employees): $160,000
  • Manager salary: $100,000
  • Office rent: $50,000
• 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 150 clients will be served.