Question
Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth
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 $18,720. The booth will be open 39 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $184 per package. She will continue to sell the existing product, EZRecords, which costs $98 per package. Ms. Ortega believes that the salesperson will spend approximately 29 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 72 units of EZRecords and 46 units of ProOffice. b. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 210 units of EZRecords and 99 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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