• Green Thumb Landscaping wants to estimate its annual costs associated with clients. Assume costs for supplies and landscaping staff are variable costs.
• Data from last year (75 clients):
  • Supplies: $13,000
  • Landscaping staff wages: $115,000
  • Manager salary: $87,000
  • Office rent: $36,000
• 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 95 clients will be served.