peter is thinking of starting up a"Personal FinancialServices" consultation in his spare time. The basic office equipment will cost $2560, and the variable cost(VC) for each consultation is estimated to be $15.45. He plans to bill each client $52.00 per consultation.

(a)

What is thebreak-even quantity of consultations forPeter's "Personal FinancialServices" operation?

b)

IfPeter's profit goal is $1200, how many consultations would he need to reach hisgoal?

(c)

Briefly explain the concept of a"Contribution Margin," and demonstrate how the Contribution Margin(CM) determined from the information above can be used to determine the samebreak-even quantity determined in part(a)