Finding Fixed Costs & Variable Costs: SocialSpotlight dot com

[oregon789]

I'm stuck on this question because I can't figure out how to find fixed costs without knowing variable costs. I guess I need help figuring out both. I'm also not sure if I should be using the 4103 clients number or the 9283 clients number... or both.

"SocialSpotlight dot com is a social media management web site. It charges each client $100 per month. During its first month, when SocialSpotlight signed up 4103 clients, its profit was $-20,000.

During the second month it had a total of 9283 clients and its profit was $-8000.
Assuming monthly revenue, cost, and profit are linear functions of the the number of clients enrolled, find fixed monthly costs. Find variable cost per client. How many clients will they need to break even?"

 

[oregon789]

All that's clear is 9283-4103=5180 clients brought in
$20,000-$8,000=$12,000 during 2nd month.

Where did you get that problem?

It's from my math 245 class. so there's no way to solve it?

 

[Deleted member 4993]

I'm stuck on this question because I can't figure out how to find fixed costs without knowing variable costs. I guess I need help figuring out both. I'm also not sure if I should be using the 4103 clients number or the 9283 clients number... or both.

"SocialSpotlight dot com is a social media management web site. It charges each client $100 per month. During its first month, when SocialSpotlight signed up 4103 clients, its profit was $-20,000.

During the second month it had a total of 9283 clients and its profit was $-8000.
Assuming monthly revenue, cost, and profit are linear functions of the the number of clients enrolled, find fixed monthly costs. Find variable cost per client. How many clients will they need to break even?"

You are given two points → (4103, - 20) & (9283, -8). Draw a straight line - then slope and the y-intercept and the x-intercepts are the answers to your questions.