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Problem 1 1 - 2 4 A ( Algo ) Context - sensitive nature of cost behavior classifications LO 1 1 - 1 Rita Jekyll
Problem A Algo Contextsensitive nature of cost behavior classifications LO
Rita Jekyll operates a sales booth in computer software trade shows, selling an accounting software package, Abacus. She purchases the package from a software company for $ each. Booth space at the convention hall costs $ per show.
Required
a Sales at past trade shows have ranged between and software packages per show. Determine the average cost of sales per unit if Ms Jekyll sells or units of Abacus at a trade show. Use the following chart to organize your answer. Is the cost of booth space fixed or varlable?
b If Ms Jekyll wants to earn a $ profit on each package of software she sells at a trade show, what price must she charge at sales volumes of or units?
c Record the total cost of booth space If Ms Jekyll attends one, two, three, four, or five trade shows. Is the cost of booth space fixed or varlable relative to the number of shows attended?
d Ms Jekyll provides decorative shopping bags to customers who purchase software packages. Some customers take the bags; others do not. Some customers stuff more than one software package into a single bag. The number of bags varles in relation to the number of units sold, but the relationship is not proportional. Assume that Ms Jekyll uses $ of bags for every software packages sold. What is the additional cost per unit sold? Is the cost fixed or variable?
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Required A
Required B
Sales at past trade shows have ranged between and software packages per show. Determine the average cost of sales per unit if Ms Jekyll sells or units of Abacus at a trade show. Use the following chart to organize your answer. Is the cost of booth space fixed or variable?
Note: Round "Average cost per unit" answers to decimal places.
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tableSales Volume in Units,Total cost of software,$
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