• XYZ Services offers IT consulting services. Calculate the direct costs, fixed costs, variable costs, and total operating costs for servicing a client based on the following information:
  • Direct labor costs: $30,000 for the client project
  • Office rent (fixed): $5,000 per month
  • Travel expenses (variable): $1,000 plus $50 per hour of service
  • Marketing expenses (variable): $2,000 per month plus 3% of project revenue.