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?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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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