Life Lessons provides academic enrichment and review activities for high school students in 4 subject areas: English, mathematics, science, and history. In November 20x1, the firm's information system produced the following data: $\begin{array}{lllll}&\text { Number of}&\text { Number of }&\text {Percent of}&\text { Direct }\
&\text { Tutors } &\text { Students } &\text { Faculty } & \text { Costs }\
\text { English } & 4 & 20 & 10 \% & \$ 6,000 \
\text { Mathematics } & 3 & 24 & 25 & 8,000 \
\text { Science } & 5 & 15 & 50 & 12,000\\text { History }& 2&8&15&3,000
\end{array}$ Regardless of subject area, clients pay $50 per hour for tutoring services. Costs associated with the Life Lessons operations for November 20x1 included: $\begin{array}{lr}
\text { Facility rent } & \$ 2,500 \
\text { Custodial services } & 1,800 \
\text { Utilities } & 600 \
\text { Computer equipment amortization } & 800 \
\text { Advertising } & 400
\end{array}$
The number of students in each area is most likely to be a cost driver for:
A) Utility costs
B) Advertising costs
C) Cost for tutors
D) Price charged for tutoring

Question

Quizplus · Accepted Answer

The number of students directly influences the need for tutors, as more students typically require more tutors to maintain quality of instruction.

Life Lessons Provides Academic Enrichment and Review Activities for High