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# Breakeven workshops

During 2008, the Training Department of Firm XYZ conducted 200 workshops with 20 individuals in each. The charge per individual was \$300. This is the maximum number of workshops that can be held in a year. The firm employs 2 Admin. Assistants, 1 Training Officer, and 1 Manager on a permanent basis. 2 Part-time trainers are hired as needed. Part-time trainers are paid \$1,500 each per workshop.

Following are the results for 2008:

Training Department Revenue (200 x 20 x \$300)= \$1,200,000
Less expenses:
Trainer costs (200 x 2 x \$1,500)= \$600,000
Manuals for participants = \$120,000
Postage % Misc costs = \$9,450
Manager's salary = \$120,000
Training Officer = \$90,000
Utilities/phone costs = \$20,000

Total expenses: \$1,164,450

Income from operations:(1,200,000 - 1,164,450)= \$35,550

Common Allocated costs at 10% of revenue = \$120,000

Net income or (loss): (\$35,550 - \$120,000) = (\$84,450)

The question is: After determining the fixed and variable costs, given the allocated commom costs at 10% revenue, calculate the number of workshops needed to break even.

My question is: Are the common costs that are allocated at 10% of revenue considered to be fixed or variable in this case? (No other info is provided). I'll get different break-even levels depending on whether they are considered fixed or variable.