Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Many commissioned sales people receive a base salary, plus additional pay based on either sales dollars or units sold. The following information is for the

Many commissioned sales people receive a base salary, plus additional pay based on either sales dollars or units sold. The following information is for the first quartery of this year:

Month Units Sold Salary Costs
January

4,100

$ 20,350.00
February

4,000

$ 20,000.00
March

4,200

$ 20,700.00

Using the High/Low Method we covered in class, what is the variable cost of monthly salary cost per unit sold? Based on the information in Question #3, how much is the fixed cost of salaries each month? The company is having a really good sales month in April and you expect there will be 6,000 units sold. How much will the salary cost be for April, if 6,000 units are sold?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting

Authors: Craig Deegan

9th Edition

1743767382, 9781743767382

Students also viewed these Accounting questions