• WXY Services provides legal consulting 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: $40,000 for the client project
  • Office rent (fixed): $6,000 per month
  • Travel expenses (variable): $1,200 plus $80 per hour of service
  • Marketing expenses (variable): $2,500 per month plus 5% of project revenue.