Chicago consulting group which uses an activit based costing system offers a software training program seminar to companies for $ 12,000 per seminar for 100 students, unit level activity cost $30 per student and facility cost total $ 180,000 per year additional data.
Batch level activity are $ 2,500 per seminar,product levelactivity consist of 1,000 product maintenance hours per year to keep the seminar up to date at $ 75 per hour
A from ABC identify one problem associate with the basic cost voluom profit
B compute chicago consulting group's operating income befor tax considering the cost in the preceding bulleted and an expected 100 seminar per year
C what is the company break even seminar quantity