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:

Preconscious

In Freudian psychology, thoughts and feelings not currently in awareness but can be easily brought to consciousness.

Reaction Formation

A defense mechanism where an individual behaves in a manner opposite to their actual feelings or impulses.

Association

A connection or correlation between two or more entities, often used in psychology to refer to the link between thoughts, feelings, or experiences.

Cruelty

Deliberate actions or behavior that causes pain or suffering to others, often indicative of a lack of empathy.