Question
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?
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