SHARE Is Trying to Determine How Many Clients Must Be

question 139

Multiple Choice

SHARE is trying to determine how many clients must be serviced in order to cover its monthly service overhead. Using the high-low method, it has determined that the variable cost per client is $800 and that the monthly fixed overhead is $28,000. Assuming an average fee of $1,200 per client, the breakeven point per month is

• A) 35 clients.
• B) 80 clients.
• C) 70 clients.
• D) 55 clients.

Analyze the effects of output changes on costs and the decision-making process in both short-run and long-run scenarios.

Understand the definitions and characteristics of nonexperimental and experimental research methods.

Recognize the elements of inferences of cause and effect, including temporal precedence, covariation, and elimination of other causes.

Differentiate between dependent, independent, situational, and confounding variables.

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Definitions:

Court Style

The artistic style or fashion prevalent within a royal court, often setting trends and standards for luxury, elegance, and cultural expression.

Rigid Frontality

A stylistic convention in art where figures are depicted straight-on, with no turn of the head or twist of the body, often used to convey authority or divinity.

Abbot Suger

A French abbot of the 12th century known for pioneering Gothic architecture, notably in the Basilica of Saint-Denis near Paris.

Saint-Denis

A historic town near Paris, France, famous for the Basilica of Saint-Denis, a landmark of Gothic architecture and the burial site of French monarchs.