Answered: nit of product sold. During March, the…

nit of product sold. During March, the rep sold 140 units. Required Calculate the total monthly cost of the sales representativ

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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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

Question

Benson Corporation paid one of its sales representatives $8,500 during the month of March. The rep is paid a base salary plus $13 per unit of product sold. During March, the rep sold 140 units.

Required

Calculate the total monthly cost of the sales representative’s salary for each of the following months.

Benson Corporation paid one of its sales representatives $8,500 during the month of March. The rep is paid a base salary plus $13 per
unit of product sold. During March, the rep sold 140 units.
Required
Calculate the total monthly cost of the sales representative's salary for each of the following months.
Month
Number of units sold
Total variable cost
Total fixed cost
Total salary cost
April
180
May
90
June
190
July
100

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