Goldfish Enterprises' costs for selling 15,000 hours of consultancy services are $345,000 and costs for 7,000 hours are $185,000. The company wishes to estimate its fixed and variable costs. a. What are the fixed and variable costs for Goldfish? b. What is the principal assumption behind your calculation?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 5E: Identify fixed and variable costs Intuit Inc. (INTU) develops and sells software products for the...
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Goldfish Enterprises' costs for selling 15,000 hours of consultancy services are $345,000 and costs for 7,000 hours are $185,000. The
company wishes to estimate its fixed and variable costs.
a. What are the fixed and variable costs for Goldfish?
b. What is the principal assumption behind your calculation?
Transcribed Image Text:Goldfish Enterprises' costs for selling 15,000 hours of consultancy services are $345,000 and costs for 7,000 hours are $185,000. The company wishes to estimate its fixed and variable costs. a. What are the fixed and variable costs for Goldfish? b. What is the principal assumption behind your calculation?
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