Question: GFT's current cost model is total costs equals $30,000 per month plus $25 per client. GFT charges $80 per client for a tour. A histogram

 GFT's current cost model is total costs equals $30,000 per month
plus $25 per client. GFT charges $80 per client for a tour.

GFT's current cost model is total costs equals $30,000 per month plus $25 per client. GFT charges $80 per client for a tour. A histogram of GFT's monthly distribution of the number of clients is given in the figure. In what percentage of months is it unambiguous that GFT does not break-even? 6.7% 3.3% 30% 26.7% Assume GFT selected these observations as the high and low observations: { Clients =400, Costs =$36,000} and { Clients =850, Costs =$43,500}. They calculated the variable cost per client as $16.67. Estimate the monthly fixed costs. Round to the nearest $1.00. Question 5 10pts Estimate the operating costs if there are 740 clients for the month. Assume GFT used the following parameter estimates: variable cost per client =$15.00 and fixed costs per month = $37,250

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!