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Problem 12-2 20 points Speaker Inc is considering expanding their business. They plan to hire a salesperson to cover trade shows. Because of compensation, travel
Problem 12-2 20 points Speaker Inc is considering expanding their business. They plan to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for Assume that the fixed costs will be allocated based on selling hours for each product. Hint : Calculate fixed cost rate per hour so you can spread fixed costs to each product Required 1. Determine the estimated total cost (including fixed and variable costs) and cost per unit of each product, assuming that the salesperson is able to sell 800 units of Singles salesperson is able to sell 500 units of HRs 2. Determine the estimated total cost (including fixed and variable costs) and cost per unit of each product, assuming that the salesperson is able to sell 2000 units of Singles salesperson is able to sell 1000 units of HRs 3. Explain why the cost per unit figures calculated in Requirement 1 are different from the amounts calculated in Requirement 2. Also explain how the differences in estimated cost per unit will affect pricing decisions
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