Question

Zachary Corporation paid one of its sales representatives $5,500 during the month of March. The rep is paid a base salary plus $10 per unit of product sold. During March, the rep sold 110 units. Required Calculate the total monthly cost of the sales representatives salary for each of the following months: MayJune July Month Number of units Total variable cost Total fixed cost Total salary cost April 150 60 160 70

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Answer #1

Answer Month Number of Units Total Variable Cost Total Fixed Cost Total Salary Cost April 150 1500 4400 5900 60 600 4400 5000 June 160 1600 4400 6000 Jul 70 700 4400 5100

Calculation:

Salary per month = Base Salary + ($10 * Number of Units Sold)

Number of Units Sold in March = 110 Units
Salary Paid to Sales Representative in March = $5,500
$5,500 = Base Salary + ($10 * 110)
$5,500 = Base Salary + $1,100
Base Salary = $4,400

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