Answered step by step
Verified Expert Solution
Question
1 Approved Answer
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
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 $180 each. Booth space at the convention hall costs $13,000 per show. Required a. Sales at past trade shows have ranged between 300 and 500 software packages per show. Determine the average cost of sales per unit if Ms. Jekyll sells 300,350,400,450, or 500 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 $58 profit on each package of software she sells at a trade show, what price must she charge at sales volumes of 300,350,400,450, or 500 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 variable 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 varies in relation to the number of units sold, but the relationship is not proportional. Assume that Ms. Jekyll uses $30 of bags for every 50 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. Sales at past trade shows have ranged between 300 and 500 software packages per show. Determine the average cost of sales per unit if Ms. Jekyll sells 300,350,400,450, or 500 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 "Averace cost Der unit" answers to 2 decimal Dlaces. \begin{tabular}{|c|c|c|c|c|c|c|} \hline Sales Volume in Units & & 0 & 350 & 400 & 450 & 500 \\ \hline Total cost of software & $ & 54,000 & & & & \\ \hline Total cost of booth rental & & 13,000 & & & & \\ \hline Total cost of sales & $ & 67,000 & & & & \\ \hline Average cost per unit & $ & 223.33 & & & & \\ \hline The cost of booth space is & & & & & & \\ \hline \end{tabular} Requiled B
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started