Carr Company provides human resource consulting services to small- and medium-sized companies. Last year, Carr provided services to 600 clients. Total fixed costs were $224,000 with total variable costs of $75,000. Based on this information, complete the following chart: 400 clients 700 clients 800 clients Total costs Fixed costs $ Variable costs Total costs $4 Cost per client Fixed cost Variable cost Total cost per client $ %24 %24 %24 %24 %24

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
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Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 6EA: Carr Company provides human resource consulting services to small- and medium-sized companies. Last...
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Carr Company provides human resource consulting services to small- and medium-sized
companies. Last year, Carr provided services to 600 clients. Total fixed costs were $224,000
with total variable costs of $75,000. Based on this information, complete the following chart:
400 clients
700 clients
800 clients
Total costs
Fixed costs
Variable costs
Total costs
$4
$4
Cost per client
Fixed cost
$
Variable cost
Total cost per client $
%24
%24
%24
%24
%24
%24
%24
Transcribed Image Text:Carr Company provides human resource consulting services to small- and medium-sized companies. Last year, Carr provided services to 600 clients. Total fixed costs were $224,000 with total variable costs of $75,000. Based on this information, complete the following chart: 400 clients 700 clients 800 clients Total costs Fixed costs Variable costs Total costs $4 $4 Cost per client Fixed cost $ Variable cost Total cost per client $ %24 %24 %24 %24 %24 %24 %24
Markson and Sons leases a copy machine with terms that
include a fixed fee each month plus a charge for each copy
made. Markson made 10,000 copies and paid a total of
$690 in January. In April, they paid $450 for 6,000 copies.
What is the variable cost per copy if Markson uses the high-
low method to analyze costs? If required, round your
answer to two decimal places.
Variable cost $
per copy
Transcribed Image Text:Markson and Sons leases a copy machine with terms that include a fixed fee each month plus a charge for each copy made. Markson made 10,000 copies and paid a total of $690 in January. In April, they paid $450 for 6,000 copies. What is the variable cost per copy if Markson uses the high- low method to analyze costs? If required, round your answer to two decimal places. Variable cost $ per copy
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