10.00 points Exercise 11-9 Mixed cost at different levels of activity LO 11-1 Ve
ID: 2571953 • Letter: 1
Question
10.00 points Exercise 11-9 Mixed cost at different levels of activity LO 11-1 Veasy Corporation paid one of its sales representatives $7,500 during the month of March. The rep is paid a base salary plus $25 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 costExplanation / Answer
Total Salary for March=$7,500
Variable Salary = No of Units Sold x Salary Benefit per Unit Sold
=200 units x $25
=$5,000
Fixed Salary= Total Salary –Variable Salary
=$7,500-$5,000
=$2,500
April Variable Salary =240 x $25=$6,000
May Variable Salary=150 x $25=$3,750
June Variable Salary=250 x $25=$6,250
July Variable Salary=160 x $25=$4,000
Month
April
May
June
July
Number of Units Sold
240
150
250
160
Total Variable Cost
$ 6,000
$ 3,750
$ 6,250
$ 4,000
Total Fixed Cost
$ 2,500
$ 2,500
$ 2,500
$ 2,500
Total Salary Cost
$ 8,500
$ 6,250
$ 8,750
$ 6,500
Month
April
May
June
July
Number of Units Sold
240
150
250
160
Total Variable Cost
$ 6,000
$ 3,750
$ 6,250
$ 4,000
Total Fixed Cost
$ 2,500
$ 2,500
$ 2,500
$ 2,500
Total Salary Cost
$ 8,500
$ 6,250
$ 8,750
$ 6,500
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.