Could someone help me with his problem? Thank you! Hannah Ortega is considering
ID: 2583410 • Letter: C
Question
Could someone help me with his problem?
Thank you!
Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $7,500. The booth will be open 30 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $150 per package. She will continue to sell the existing product, EZRecords, which costs $100 per package. Ms. Garcia believes that the salesperson will spend approximately 20 hours selling EZRecords and 10 hours marketing ProOffice.
Required
Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 80 units of EZRecords and 50 units of ProOffice. (Round "Cost per unit" to 2 decimal places.)
Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 200 units of EZRecords and 100 units of ProOffice.
Explanation / Answer
a EZRecords: Total cost of sales 13000 =(100*80)+(7500/30*20) Cost per unit 162.5 =5100/80 ProOffice: Total cost of sales 10000 =(150*50)+(7500/30*10) Cost per unit 200 =10000/50 b EZRecords: Total cost of sales 25000 =(100*200)+(7500/30*20) Cost per unit 125 =25000/200 ProOffice: Total cost of sales 17500 =(150*100)+(7500/30*10) Cost per unit 175 =17500/100