An accountant receives a base salary of $1500 a month plus a 17. ACCOUNTANT SALARY commission that is 4% of their monthly sales. From past experience the monthly sales range from $10,000 to $100,000. a. Write an equation for the accountant's monthly salary in terms of their monthly sales. b. Graph your equation. Make sure to scale your axes to fit the problem situation. c. How much do they need to sell in a month for this accountant to earn $3,500?

An accountant receives a base salary of $1500 a month plus a 17. ACCOUNTANT SALARY commission that is 4% of their monthly sales. From past experience the monthly sales range from $10,000 to $100,000. a. Write an equation for the accountant's monthly salary in terms of their monthly sales. b. Graph your equation. Make sure to scale your axes to fit the problem situation. c. How much do they need to sell in a month for this accountant to earn $3,500?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Sunrise, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with…

A: STEP 1 YTM YTM is an annualized rate that anticipates a bond is bought at the current market price…

Q: A sales representative lives in Bloomington and must be in Indianapolis next Thursday. On each of…

A: Travel cost Travel costs refer to the expenditures for hotel, meals, incidentals, and other related…

Q: nt should be charged to obtain a maximum profit.

A: A real estate office handles a 40-unit apartment complex. When the rent is $540 per month, all units…

Q: Assume you are a salesperson earning 10 percent commission and you have sold $540,000 in products…

A: The conceptual formula used:

Q: 1. You have a small business selling cans of HuntBi, a reasonably nasty-tasting energy drink. ● You…

A: Operating income - is the income after deducting operating expenses from the revenue or sales during…

Q: You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500…

A: Computation of Budgeted Sales Revenue:- Particulars Amount($) (a)Number…

Q: 1. Sonny works as a furniture salesman and earns a base salary of P1,550 per week plus 6% commission…

A: Hi student Since there are multiple questions, we will answer only first question. Gross earnings of…

Q: ssume that the starting salary for a computer programmer in the United States is C$75,000 compared…

A: Present value is the equivalent value today of the future cash flow based on time value of money and…

Q: Community Financial provides lockbox services. They estimate that your firm can reduce its average…

Q: 1. XYZ Company sells books to universities. The company policy is to sell 60% cash and the rest in a…

A: The difference between a company's total revenue and total costs over a given period is known as…

Q: Reynold's Repair Shop has a monthly target profit of $54,000. Variable costs are 20% of sales, and…

A: Sales Above the Break-Even Point is Called Margin of Safety Sales. The margin of safety is the…

Q: Heather Hudson makes stuffed teddy bears. Recent information for her business follows: Selling…

A: Profit is calculated after deducting all the expenses from the revenue. Expenses are variale and…

Q: days Sales Outstanding is over 90 days and the Payment Interval is significantly less than 30 days.…

A: Operating cycle of a company should be less as it ensures liquidity and cash flow into the company.…

Q: A company is considering the following three compensation plans for the salespeople listed in the…

A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a…

Q: R&R Savings Bank finds that its basic transaction account, which requires a $1000 minimum balance,…

A: Monthly fee = $3.25+$1.25+$0.50=$5.00

Q: Suppose that LilyMac Photography has annual sales of $230,000, cost of goods sold of $165,000,…

A: FIRM OPERATING CYCLE Firm Operating Cycle is the Total of Account Receivable Collection Period &…

Q: Suppose you are the Director of Human Resources at the local Toyota dealership. You have recently…

A: GIVEN Suppose you are the Director of Human Resources at the local Toyota dealership. You have…

Q: You plan on starting a lawn mowing business by investing $700 of your own money and purchasing $500…

A: The sales revenue is based on the number of hour worked during the year and the rate per hour…

Q: Data for Hermann Corporation are shown below: Percent of Per Unit Sales Selling price $ 85 100%…

A: CVP analysis is an important tool to analyze the effect of changes in various variables on the net…

Q: To test and assess what you have learned from this module, let us now compute the following. 1.…

A: The gross earning of salesperson includes the fixed pay and sales commission as a percentage of…

Q: If Romeo's Racket Ball business has sales for the month of 10,000 racketballs and a racketball sells…

A: To derive accounting profit, all the expenses that are directly a part of company's operations are…

Q: Cabrera Accounting pays Shanaya Kapoor $63,480 per year. (Round your answers to two decimal places…

A: Labor cost is a direct cost considered a part of prime cost. It is a variable cost and the cost of…

Q: Describe the seasonal scenario that can influence a restaurant’s cash flow within one year of…

A: Creditors are individuals, businesses, or financial institutions that are owed money by a company or…

Q: Suppose that you have been given a summer job as an intern at Issac Aircams, a company that…

A: Product costs are costs incurred during the production process of a company's goods or services.…

Q: Anne Teak, the financial manager of a furniture manufacturer, is considering operating a lock-box…

A: A lockbox system is used when a company has high collection float and the funds are locked up. The…

Q: Set up and solve an equation for the following business situation. You are moving to a new home and…

A: Total rental cost of truck is the sum of all the costs relating to truck rental.

Question

100%

17. ACCOUNTANT SALARY
An accountant receives a base salary of $1500 a month plus a
commission that is 4% of their monthly sales. From past experience the monthly sales range
from $10,000 to $100,000.
a. Write an equation for the accountant's monthly salary in terms of their monthly sales.
b. Graph your equation. Make sure to scale your axes to fit the problem situation.
c. How much do they need to sell in a month for this accountant to earn $3,500?

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

Kauffman Market has a gross profit percentage of 40%. It is expecting an additional $3,000 in revenues over the upcoming 3-day holiday weekend. The manager would like 3 additional staff members assisting customers during this busy time. The additional staff members will each work one 6-hour shift per day and earn $12 per hour. Would it be profitable for Kauffman Market to add the extra staff members? By how much? a.No, by $(1,392) b.Yes, by $984 c.Yes, by $2,352 d.Yes, by $552
III. Commission Analyze and solve the following problem. 1. A sales agent receives 15% commission on all products that he sells. If the sales agent sold P230,450 worth of products this month, what was his total commission for the month. 2. Lawrence gets a base monthly salary of P14,500. As a sales agent, he must sell P75,000 worth of items per month. He also makes a 7.5% commission on all sales beyond the monthly quota. If Lawrence sold P140,000 worth of items this month, what is his total salary for the month including base and commission? 3. A real estate agent gets P11,000 basic salary per month plus some money by commission rates. If she gets 2.5% commission on the properties that she sells, find her total salary for the given month when she sold P1,200,000 worth of property?
A clothing retailer is going to mail out 10,000 catalogues. It costs $2 to mail out each catalogue. When a customer places an order from a catalogue assume a profit of $50 per order is earned. It is assumed that 5% of those who receive a catalogue will place an order however, this number can vary. Use the file below to help you with your tables. Assume that: [total profit = total profit made from the orders – the amount spent on mailing out the catalogues]. a) Use a one-variable data table to determine how the total profit earned from the mailing will vary depending on a response rate between 4% and 10% (with increments of 2%). b) Create a two-variable data table to show how the total profit changes with a varying response rate and number of catalogues mailed. Vary the response rate between 4% and 10% with increments of 2% and vary the number of catalogues mailed from 10,000 to 30,000 at increments of 5000.
Your sales force is asking for more administrative support. You have estimated you can hire a new person in this role at an all in cost of $30 per hour for 180 hrs per month. the upfront hiring and training expense is $5000 now. You have 3 sales people, and are guessing each sales logistics. Assume each customer acquired has an estimated total lifetime value (at the time of closing the new sale) of $1000 in profits. You have been asked to consider only 1 year in sales in making this decision ( the average turnover of these positions is once per year). Assume the company considers its opportunity cost to be 12% per year compound annually. This lucky company pays no taxes. Are the profits from the new customers worth the training and salary costs of the new hire? a.) what is the appropriate discount rate to use for this analysis? b.)what is the total PV of the new customers gained in a single year? c.)what is the value today of the salary cost? d.)would you recommend makin the hire?…
To generate leads for new business, Gustin Investment Services offers free financial planning seminars at major hotels in Southwest Florida. Gustin conducts seminars for groups of 25 individuals. Each seminar costs Gustin $3100, and the average first-year commission for each new account opened is $4600. Gustin estimates that for each individual attending the seminar, there is a 0.01 probability that he/she will open a new account. a. Determine the equation for computing Gustin's profit per seminar, given values of the relevant parameters. Round your answers to the nearest dollar. Profit (New Accounts Opened x $ 4600 -$ 3100
please solve both questions within 30 minutes. with detailed explanations.
A delivery driver received a paycheck for $1360. The company pays $5 for each pick-up at the restaurant and $3 for each drop-off. The number of drop-offs was four times the number of pick-ups Let x be the number of pick-ups and y the number of drop-offs. Answer parts (a) through (c). Use systems of equations to work this applied problem SED (a) Write an equation that represents the total amount of the paycheck. The equation represents the total amount of the paycheck (Type your answer in general form.) (b) Write an equation that represents the relationship between the number of pick-ups and the number of drop-offs The equation represents the relationship between the number of pick-ups and the number of drop-offs (Type your answer in general form.) (c) Find the number of pick-ups and the number of drop-offs The number of pick-ups is x The number of drop-offs is y
Sharon is a manufacturer's representative selling office furniture directly to businesses. She receives a monthly salary of $2000 plus a 2.2% commission on sales exceeding her quota of $150,000 per month. a. What are her earnings for a month in which she has $227,000 in sales? (Round your answer to the nearest cent.) Earnings = b. If her average monthly sales are $235,000, what straight commission rate would generate the same average monthly earnings as her current basis of remuneration? (Round your answer to four decimal places.) Commission rate =
Planning Specialists Investors is opening an office in Atlanta, Georgia. Fixed monthly expenses are office rent ($2,500), depreciation on office furniture ($260), utilities ($250), special telephone lines ($600), a subscription to an online brokerage service ($640), and the salary of a financial planner ($1,750). Variable expenses include payments to the financial planner (10% of revenue), advertising (5% of revenue), supplies and postage (2% of revenue), and usage fees for the telephone lines and computerized brokerage service (8% of revenue). Read the requirements. Requirement 1. Compute the investment firm's breakeven revenue in dollars. If the average trade leads to $500 in revenue for Planning Specialists, how many trades must it make to breakeven? First identify the formula to calculate the breakeven point in dollars. (Contribution margin per unit ▼ + Requirements 1. Compute the investment firm's breakeven revenue in dollars. If the average trade leads to $500 in revenue for…
Robert's Repair Shop has a monthly target profit of $21,000. Variable costs are 40% of sales, and monthly fixed costs are $27,000. Requirements 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. 2. Express Robert's margin of safety as a percentage of target sales. 3. Why would Robert's management want to know the shop's margin of safety? Requirement 1. Compute the monthly margin of safety in dollars if the shop achieves its income goal. Select the labels and enter the amounts to compute Robert's Repair Shop's monthly margin of safety in dollars. (1) - (2) = Margin of safety in dollars - = Requirement 2. Express Robert's margin of safety as a percentage of target sales. (Enter your answer as a whole percent.) The margin of safety as a percentage of target sales is: %. Requirement 3. Why would Robert's management want to know the shop's margin of safety?…
Please help me with my Financial Management assignment. I already worked for it, just want to confirm from experts. I really appreciate any help you can provide. I want to know the solution and answer for Questions no. 2 and 3
Assume that a prospect is interested in purchasing 4 tickets in a 20-game season ticket package. The prospect estimated that the sales force can close 20% of the deals after attending a game with an average of 1.5 transactions per customer. On average, those sales will be approximately $1,500. Assuming the cost of the package is $10,000, calculate the return on investment for the business. would like you to identify the following: • Total number of tickets in the ticket package? • Assuming the prospect will send 1 sales person to each game, how many tickets will they use in total for their potential customers? • How many customers will they gain using 20% as a conversion rate ? • Total number of transactions from customers ? • Total Revenue Generated ? • Return on Investment ? Explain how you arrived at your final numbers.