Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

GFT's current cost model is total costs equals $30,000 per month plus $25 per client. GFT charges $80 per client for a tour. A histogram

image text in transcribed
image text in transcribed
GFT's current cost model is total costs equals $30,000 per month plus $25 per client. GFT charges $80 per client for a tour. A histogram of GFT's monthly distribution of the number of clients is given in the figure. In what percentage of months is it unambiguous that GFT does not break-even? 6.7% 3.3% 30% 26.7% Assume GFT selected these observations as the high and low observations: { Clients =400, Costs =$36,000} and { Clients =850, Costs =$43,500}. They calculated the variable cost per client as $16.67. Estimate the monthly fixed costs. Round to the nearest $1.00. Question 5 10pts Estimate the operating costs if there are 740 clients for the month. Assume GFT used the following parameter estimates: variable cost per client =$15.00 and fixed costs per month = $37,250

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

2. Recognize students who are helpful.

Answered: 1 week ago