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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 $14,000. The booth will be open 40 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $178 per package. She will continue to sell the existing product, EZRecords, which costs $91 per package. Ms. Ortega belleves that the salesperson will spend approximately 30 hours selling EZRecords and 10 hours marketing ProOffice. Required a. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 85 units of EZRecords and 56 units of ProOffice. b. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 198 units of EZRecords and 107 units of ProOffice. (For all requirements, round "Cost per unit" to 2 decimal places.) a. Total cost of sales Cost per unit b. Total cost of sales Cost per unit EZRecords ProOffice

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 $14,000. The booth will be open 40 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $178 per package. She will continue to sell the existing product, EZRecords, which costs $91 per package. Ms. Ortega belleves that the salesperson will spend approximately 30 hours selling EZRecords and 10 hours marketing ProOffice. Required a. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 85 units of EZRecords and 56 units of ProOffice. b. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 198 units of EZRecords and 107 units of ProOffice. (For all requirements, round "Cost per unit" to 2 decimal places.) a. Total cost of sales Cost per unit b. Total cost of sales Cost per unit EZRecords ProOffice

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $14,000. The booth will be open 40 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $178 per package. She will continue to sell the existing product, EZRecords, which costs $91 per package. Ms. Ortega belleves that the salesperson will spend approximately 30 hours selling EZRecords and 10 hours marketing ProOffice. Required a. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 85 units of EZRecords and 56 units of ProOffice. b. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 198 units of EZRecords and 107 units of ProOffice. (For all requirements, round "Cost per unit" to 2 decimal places.) a. Total cost of sales Cost per unit b. Total cost of sales Cost per unit EZRecords ProOffice
Transcribed Image Text: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 $14,000. The booth will be open 40 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $178 per package. She will continue to sell the existing product, EZRecords, which costs $91 per package. Ms. Ortega belleves that the salesperson will spend approximately 30 hours selling EZRecords and 10 hours marketing ProOffice. Required a. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 85 units of EZRecords and 56 units of ProOffice. b. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 198 units of EZRecords and 107 units of ProOffice. (For all requirements, round "Cost per unit" to 2 decimal places.) a. Total cost of sales Cost per unit b. Total cost of sales Cost per unit EZRecords ProOffice
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