Use the following to answer questions 1 2:SHARE is trying to determine how many
Use the following to answer questions 1 2:SHARE is trying to determine how many clients must be serviced in order to cover its monthly service overhead. Using the high-low method it has determined that the variable cost per client is $800 and that the monthly fixed overhead is $28000.1. Assuming an average fee of $1200 per client the breakeven point per month isA) 35 clients.B) 80 clients.C) 70 clients.D) 55 clients.2. Assuming an average fee of $1400 per client and a targeted profit of $26000 the number of clients to be serviced isA) 80 clients.B) 120 clients.C) 47 clients.D) 90 clients.3. If fixed costs are $80000 the contribution margin is $25 per unit and the targeted profit is $30000 then the required unit sales areA) 4400 units.B) 2000 units.C) 4500 units.D) 2500 units.4. Dilly LLC wants to make a profit of $30000. It has variable costs of $85 per unit and fixed costs of $20000. How much must it charge per unit if 5000 units are sold?A) $70B) $55C) $85D) $95E) $100
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