Problem

Mixed cost at different levels of activityOmar Corporation paid one of its sales represent...

Mixed cost at different levels of activity

Omar Corporation paid one of its sales representatives $4,300 during the month of March. The rep is paid a base salary plus $15 per unit of product sold. During March, the rep sold 200 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

240

150

250

160

Total variable cost

 

 

 

 

Total fixed cost

 

 

 

 

Total salary cost

 

 

 

 

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