What Are the Expected Average Quarterly Costs of Running a Consulting

question 55

Multiple Choice

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

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Definitions:

Stagnant Stage

a period in which there is little or no growth, progress, or change, often indicating a need for new strategies or interventions.

Failure Stage

A phase in the lifecycle of a business or project characterized by a significant decline in performance, potentially leading to cessation of operations.

Failure Rate

The proportion or frequency at which an event, such as an error or breakdown, occurs within a specific period or among a specified set of entities.

Strategic Leadership

Leadership that involves making decisions that enhance the prospects for long-term success of the organization, while maintaining financial stability.