Question
Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of $22,750 and is capable of processing as many
Elliott, Inc., has four salaried clerks to process purchase orders. Each clerk is paid a salary of $22,750 and is capable of processing as many as 6,600 purchase orders per year. Each clerk uses a PC and laser printer in processing orders. Time available on each PC system is sufficient to process 6,600 orders per year. The cost of each PC system is $1,200 per year. In addition to the salaries, Elliott spends $26,928 for forms, postage, and other supplies (assuming 26,400 purchase orders are processed). During the year, 25,750 orders were processed.
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