b. What is the total administrative cost for an estimated activity level of 5,450 counseling hours? O $100,280 $75,500 O $24,780 O $175,780 O Some other amount c. What is the total estimated variable cost per client (assuming that counseling costs are variable costs)? O $596.60 $476.60 O $340.60 O $220.60 O Some other amount d. What is the expected contribution margin per client to be earned? O $635.60 O $488.40 O $515.60 O $368.40 O Some other amount
e. what is the estimating equation for total cost based on number of clients implied by these results
1. Total cost= $75,500 + ($436.80 x number of clients)
2.Total cost= $75,500 + ($403.20 x number of clients)
3. Total cost= $75,500 + ($50.40 x number of counseling hours)
a. The estimating equation for total cost based on the number of clients implied by these results is:
Total cost = $75,500 + ($436.80 x number of clients) (Option 1)
or
Total cost = $75,500 + ($403.20 x number of clients) (Option 2)
Since both options provide estimating equations for total cost based on the number of clients, either of them can be used.
b. To find the total administrative cost for an estimated activity level of 5,450 counseling hours, we need to use the estimating equation for administrative costs based on counseling hours:
Administrative costs = $75,500 + ($18.40 x counseling hours)
Substituting counseling hours with 5,450:
Administrative costs = $75,500 + ($18.40 x 5,450)
Administrative costs = $175,780
Therefore, the total administrative cost for an estimated activity level of 5,450 counseling hours is $175,780. Option D is correct.
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