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.

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Definitions:

High Amplitude

Refers to waves or signals with a large magnitude or intensity, often used in the context of sound, light, or electrical waves.

Electroencephalogram (EEG)

A test that measures electrical activity in the brain using small, metal discs attached to the scalp.

Action Potential

A rapid, temporary change in the electrical potential across a cell membrane, leading to the transmission of nerve impulses.

Single Active Neuron

describes a scenario where only one neuron is actively firing, often used in neurological studies to understand neuronal behavior.