What are the expected average quarterly costs of running a consulting practice if fixed costs are expected to be $4,000 a month and variable costs are expected to be $100 per client for each quarter? Expected number of clients for the year are: $$\begin{array} { | c | c | c | c | }
\hline \text { Jan-March } & \text { April-June } & \text { July-Sep } & \text { Oct-Dec } \
\hline 110 & 140 & 150 & 100 \
\hline
\end{array}$$
A) $12,500
B) $24,500
C) $16,500
D) $19,500

Question

What are the expected average quarterly costs of running a consulting practice if fixed costs are expected to be $4,000 a month and variable costs are expected to be $100 per client for each quarter? Expected number of clients for the year are: $$\begin{array} { | c | c | c | c | } 
\hline \text { Jan-March } & \text { April-June } & \text { July-Sep } & \text { Oct-Dec } \
\hline 110 & 140 & 150 & 100 \
\hline
\end{array}$$
A) $12,500
B) $24,500
C) $16,500
D) $19,500

Quizplus · Accepted Answer

Fixed costs per quarter = $4,000 x 3 = $12,000Variable costs per quarter = $100 x (110 + 140 + 150 + 100) = $12,500Total costs per quarter = $12,000 + $12,500 = $24,500

What Are the Expected Average Quarterly Costs of Running a Consulting