Question: how do I find the contribution margin: Talon Services offers standardized job counseling services. The company is planning a new service line targeted to active
how do I find the contribution margin: Talon Services offers standardized job counseling services. The company is planning a new service line targeted to active seniors who are retiring and looking forward to a new career. The service will sell for a flat $ per client and will consist of a standardized offering. The service will consist of a total of hours with a counseling specialist and a battery of tests to assess interests and aptitudes. Counseling specialists, who are contract employees, are paid $ per hour. The testing is estimated to cost $ per client. Administrative costs for the new service have not been estimated, but the company has collected information on counseling hours and administrative costs for other services over the past months. The following is a summary of a simple regression of administrative costs on counseling hours: Simple Regression Analysis ResultsDependent variableAdministrative costs monthlyIndependent variableCounseling hours monthlyComputed valuesIntercept$ Coefficient on independent variable$ Coefficient of correlationR
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