STU Services offers IT support services. Calculate the direct costs, fixed costs, variable costs, and total operating costs for servicing a corporate client based on the following information:

• Direct labor costs (direct): $10,000 for the client project
• Software licenses (fixed): $3,000 annually
• Travel expenses (variable): $500 plus $50 per hour of service
• Insurance premiums (fixed): $1,200 per year
• Maintenance costs (variable): $300 per client project

Requirements:

• Present the breakdown of direct, fixed, and variable costs associated with servicing one corporate client in a structured paragraph.
• Calculate the total operating costs for providing IT support services.
• Discuss the impact of hourly service rates on variable costs and profitability.
• Analyze the fixed costs' allocation across multiple client projects.
• Recommend cost-control strategies to improve service efficiency and reduce expenses.