Question
A) Sales at past trade shows have ranged between 400 and 600 software packages per show. Determine the average cost of sales per unit if
A) Sales at past trade shows have ranged between 400 and 600 software packages per show. Determine the average cost of sales per unit if Ms. Jekyll sells 400, 450, 500, 550, or 600 units of Abacus at a trade show. Use the following chart to organize your answer. Is the cost of booth space fixed or variable?
B) If Ms. Jekyll wants to earn a $56 profit on each package of software she sells at a trade show, what price must she charge at sales volumes of 400, 450, 500, 550, or 600 units?
C) Record the total cost of booth space if Ms. Jekyll attends four, five, six, seven, or eight trade shows. Is the cost of booth space fixed or variable relative to the number of shows attended?
D) Ms. Jekyll provides decorative shopping bags to customers who purchase software packages. Some customers take the bags; others do not. Some customers stuff more than one software package into a single bag. The number of bags varies in relation to the number of units sold, but the relationship is not proportional. Assume that Ms. Jekyll uses $30 of bags for every 54 software packages sold. What is the additional cost per unit sold? Is the cost fixed or variable?
Required A Required B Required C Required D Sales at past trade shows have ranged between 400 and 600 software packages per show. Determine the average cost of sales per unit if Ms. Jekyll sells 400, 450, 500, 550, or 600 units of Abacus at a trade show. Use the following chart to organize your answer. Is the cost of booth space fixed or variable? (Round "Average cost per unit" answers to 2 decimal places.) Show less Sales Volume in Units 400 450 500 550 600 $ 80,000 Total cost of software Total cost of booth rental Total cost of sales Average cost per unit The cost of booth space is a 10,000 $ 90,000 $ 225.00Step by Step Solution
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