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 $10,250. The booth will be open 25 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $180 per package. She will continue to sell the existing product, EZRecords, which costs $109 per package. Ms. Ortega believes that the salesperson will spend approximately 15 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 81 units of EZRecords and 54 units of ProOffice. b. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 197 units of EZRecords and 92 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 $10,250. The booth will be open 25 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $180 per package. She will continue to sell the existing product, EZRecords, which costs $109 per package. Ms. Ortega believes that the salesperson will spend approximately 15 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 81 units of EZRecords and 54 units of ProOffice. b. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 197 units of EZRecords and 92 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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 $10,250. The booth will be open 25
hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $180 per package. She will
continue to sell the existing product, EZRecords, which costs $109 per package. Ms. Ortega believes that the salesperson will spend
approximately 15 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 81 units of
EZRecords and 54 units of ProOffice.
b. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 197 units of
EZRecords and 92 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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