Groot Promotional Services uses a job order system for costing and billing promotional services for dance and ballet performances
Groot has four public relations specialists plus an office staff. At the beginning of the year, Groot estimated the total cost of salaries and benefits for the public relations specialists at $675,000 and a total of 7,500 billable hours for the year. All remaining office and administrative costs were estimated at $405,000. The allocation base for office and administrative costs is billable hours. In June, Groot signed a contract for a Russian ballet performance. It estimated the new contract would require 34 hours of specialist time. What is the total cost estimate for this contract?
A) $1,836
B) $4,896
C) $3,060
D) $1,224
B .
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In the context of consumer markets, which of the following is true of consumers?
a. They often follow the practice of reciprocity. b. They tend to buy in very large quantities. c. They approach purchasing rather formally. d. They normally buy products rather than lease them.
When the total fixed costs increase, the breakeven point ________
A) increases B) decreases C) decreases proportionately D) remains the same