Total variable cost for March=(14*160)=$2240
Hence total fixed cost for March=6500-2240
=$4260
April | May | June | July | |
Number of units | 200 | 110 | 210 | 120 |
Total variable cost | (14*200)=2800 | (14*110)=1540 | (14*210)=2940 | (14*120)=1680 |
Total fixed cost | 4260 | 4260 | 4260 | 4260 |
Total salary cost(Total fixed cost+Total variable cost) | 7060 | 5800 | 7200 | 5940 |
NOTE:Total fixed costs and variable cost per unit do not change with change in units
5 Zachary Corporation paid one of its sales representatives $6,500 during the month of March. The...
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Exercise 11-9 Mixed cost at different levels of activity LO 11-1 Adams Corporation paid one of its sales representatives $5,000 during the month of March. The rep is paid a base salary plus $11 per unit of product sold. During March, the rep sold 170 units. Required Calculate the total monthly cost of the sales representative's salary for each of the following months: Month April May June July 210 120 220 130 Number of units sold Total variable cost Total...
Exercise 11-9 Mixed cost at different levels of activity LO 11-1 Zachary Corporation paid one of its sales representatives $8,000 during the month of March. The rep is paid a base salary plus $13 per unit of product sold. During March, the rep sold 100 units. Required Calculate the total monthly cost of the sales representative’s salary for each of the following months: Month April May June July Number of units sold 140 50 150 60 Total variable cost Total...
Exercise 11-9 Mixed cost at different levels of activity LO 11-1 Stuart Corporation paid one of its sales representatives $7,000 during the month of March. The rep is paid a base salary plus $11 per unit of product sold. During March, the rep sold 150 units. Required Calculate the total monthly cost of the sales representative's salary for each of the following months: Month AprilMayJuneJuly 190 200 110 Number of units sold Total variable cost Total fixed cost Total salary...