SHARE Is Trying to Determine How Many Clients Must Be

question 120

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 $1,400 per client and a targeted profit of $26,000, the number of clients to be serviced is

• A) 80 clients.
• B) 120 clients.
• C) 47 clients.
• D) 90 clients.

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Definitions:

Cocktail Party Effect

The brain's ability to focus one's auditory attention on a particular stimulus while filtering out a range of other stimuli, as when a person can focus on a single conversation in a noisy room.

Inattentional Blindness

A cognitive phenomenon where an individual fails to perceive an unexpected stimulus in plain sight, due to their focus being engaged on another task or aspect of the environment.

Dual Processing

The principle that information is often simultaneously processed on separate conscious and unconscious tracks in the mind.

Blindsight

A condition in which a person can respond to visual stimuli without consciously perceiving them, typically due to damage to the primary visual cortex.