Tutors-R-Us Provides Academic Enrichment and Review Activities for High School

Multiple Choice

Tutors-R-Us provides academic enrichment and review activities for high school students in 4 subject areas: English, mathematics, science, and history. In November 20x1, the firm's information system produced the following data: Number of Number of Percent of Direct
Tutors Students Faculty Costs
English 4 20 10% $ 6,000
Mathematics 3 24 25 8,000
Science 5 15 50 12,000
History 2 8 15 3,000
Regardless of subject area, clients pay $50 per hour for tutoring services. Costs associated with the Tutors-R-Us operations for November 20x1 included:
Facility rent $2,500
Custodial services 1,800
Utilities 600
Computer equipment amortization 800
Advertising 400
The number of students in each area is most likely to be a cost driver for:

A) Utility costs
B) Advertising costs
C) Cost for tutors
D) Price charged for tutoring