• FreshPR Agency wants to estimate its annual costs associated with clients. Assume costs for PR materials and staff are variable costs.
• Data from last year (105 clients):
  • PR materials: $19,000
  • Staff wages: $135,000
  • Manager salary: $100,000
  • Office rent: $49,000
• Required:
  • Use account analysis to estimate total fixed costs per year and the variable cost per unit. State the results in the cost equation form Y = f + vX.
  • Estimate the total costs for next year assuming 125 clients will be served.