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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 $12,000. The booth will be open 24 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $177 per package. She will continue to sell the existing product, EZRecords, which costs $102 per package. Ms. Ortega believes that the salesperson will spend approximately 14 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 86 units of EZRecords and 47 units of ProOffice b. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 193 units of EZRecords and 95 units of ProOffice.
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