Problem 2-20A (Algo) Context-sensitive nature of cost behavior classifications LO 2-1 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 $200 each. Booth space at the convention hall costs $13,000 per show. Required a. Sales at past trade shows have ranged between 500 and 700 software packages per show. Determine the average cost sales per unit if Ms. Jekyll sells 500, 550, 600, 650, or 700 units of Abacus at a trade show. Use the following chart to organize your answer. Is the cost of booth space fixed or variable? b. If Ms. Jekyll wants to earn a $56 profit on each package of software she sells at a trade show, what price must she charge at sales volumes of 500, 550, 600, 650, or 700 units? c. Record the total cost of booth space if Ms. Jekyll attends three, four, five, six, or seven trade shows. Is the cost of booth space fixed or variable relative to the number of shows attended? d. Ms. Jekyll provides decorative shopping bags to customers who purchase software packages. Some customers take tile bags: others do not. Some customers stuff more than one software package into a single bag. The number of bags varies in relation to the number of units sold, but the relationship is not proportional. Assume that Ms. Jekyll uses $36 of bags for every 52 software packages sold. What is the additional cost per unit sold? Is the cost fixed or variable? Complete this question by entering your answers in the tabs below. Required A Required B Required Required D Sales at past trade shows have ranged between 500 and 700 software packages per show. Determine the average cost of sales per unit if Ms. Jekyll sells 500, 550, 600, 650, or 700 units of Abacus at a trade show. Use the following chart to organize your answer. Is the cost of booth space fixed or variable? (Round "Average cost per unit" answers to 2 decimal places.) Sales Volume in Units 600 650 500 550 700 $ Total cost of software Total cost of booth rental Total cost of sales Average cost per unit The cost of booth space is a 100,000 13,000 113,000 226.00 $ $ Required A Required B > Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D If Ms. Jekyll wants to earn a $56 profit on each package of software she sells at a trade show, what price must she charge at sales volumes of 500, 550, 600, 650, or 700 units? (Round your intermediate calculations and final answers to 2 decimal places.) 500 550 600 650 700 Sales Volume Price per package Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Record the total cost of booth space if Ms. Jekyll attends three, four, five, six, or seven trade shows. Is the cost of booth space fixed or variable relative to the number of shows attended? 7 Number of Trade Shows Attended 3 5 6 Total cost of booth rental 39,000 The cost of booth space relative to the number of shows attended is a Complete this question by entering your answers in the tabs below. Required A Required B Required C Required 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 varies in relation to the number of units sold, but the relationship is not proportional. Assume that Ms. Jekyll uses $36 of bags for every 52 software packages sold. What is the additional cost per unit sold? Is the cost fixed or variable? (Round your answer to 2 decimal places.) Show less A per unit Additional cost The cost is a
