• Zenith Media wants to estimate annual costs associated with its clients. Assume costs for media supplies and staff are variable costs.
• Data from last year (95 clients):
  • Media supplies: $17,000
  • Staff wages (hourly employees): $150,000
  • Manager salary: $90,000
  • Office rent: $40,000
• Required:
  • a. Use account analysis to estimate total fixed costs per year and the variable cost per unit. State your results in the cost equation form Y = f + vX.
  • b. Estimate the total costs for next year assuming 115 clients will be served.