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.

Distinguish between batch and online processing systems and their effects on database updates.

Recognize the importance and methods of segment analysis in assessing a company's performance.

Comprehend the structure and necessity of subsidiary and general ledgers in the accounting process.

Identify the principles guiding the design and operation of accounting information systems.

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Definitions:

Ethnic Affiliation

The association or connection an individual has with a particular ethnic group, often defined by common cultural, linguistic, or ancestral ties.

Employment Equity

Policies and practices aimed at eliminating discrimination and promoting equal opportunities for all job applicants and employees in the workplace.

Ethnic Mosaic

A term often used to describe a society that contains a diverse mix of ethnic groups and cultures, living together but retaining distinct cultural identities, particularly in contrast to a "melting pot."

Transnational Community

A group of people who maintain connections, create social networks, and build identities across national borders.