Question 6 Step-Variable Costs; Non-Linear Variable Costs; Cost Prediction Learn Fast specializes in developing online training modules for its clients. Most of its costs are fixed but some have unusual cost behaviour patterns. For example, because of the intense competition from other companies providing a similar service, Learn Fast pays its sales staff a fixed salary of $80,000 plus sales commissions using the following scheme: Sales Level $1-$100,000 $101,000-$150,000 $151,000-$200,000 > $200,000 Commission % 5% 7% 9% 15% Learn Fast has grown rapidly over the past three years, with similar growth in the number of new clients expected for the next few years. As a result of the growth, Learn Fast's customer support department is struggling to keep up with requests from customers for technical support. The two customer support employees are both paid an annual salary of $75,000 and are paid $60 per hour for time worked in excess of the 35 standard hours per week. In the most recent annual period the two customer support employees worked a combined total of 1,000 overtime hours. Management believes this is the maximum number of overtime hours the two employees can cope with and is considering hiring a third full-time staff member for the customer support department at a starting salary of $70,000 per year. Darred Question 6 Step-Variable Costs; Non-Linear Variable Costs; Cost Prediction Learn Fast specializes in developing online training modules for its clients. Most of its costs are fixed but some have unusual cost behaviour patterns. For example, because of the intense competition from other companies providing a similar service, Learn Fast pays its sales staff a fixed salary of $80,000 plus sales commissions using the following scheme: Sales Level $1-$100,000 $101,000-$150,000 $151,000-$200,000 > $200,000 Commission % 5% 7% 9% 15% Learn Fast has grown rapidly over the past three years, with similar growth in the number of new clients expected for the next few years. As a result of the growth, Learn Fast's customer support department is struggling to keep up with requests from customers for technical support. The two customer support employees are both paid an annual salary of $75,000 and are paid $60 per hour for time worked in excess of the 35 standard hours per week. In the most recent annual period the two customer support employees worked a combined total of 1,000 overtime hours. Management believes this is the maximum number of overtime hours the two employees can cope with and is considering hiring a third full-time staff member for the customer support department at a starting salary of $70,000 per year. Darred