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Saved ssignment Learn Fast specializes in developing online training modules for its clients. Most of its costs are fixed but some have unusual cost behaviour
Saved ssignment 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 $191,0-515e,se $151,00-$2ee.ee >$200,000 Commission 5X 7X 94 15% Leam 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 1000 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 Required: 1. In terms of cost behaviour, what type of cost do sales staff wages represent? Fixed Cost Mixed cost O Variable cost 2. Estimate total wages for a sales person who generates $210,000 in sales for alyear 3. Not available in Connect 4. In terms of cost behaviour, what type of cost do customer support staff wages represent? O Fixed Cost O Mixed cost O Variable cost 1 e E Wi Mixed cost Variable cost 2. Estimate total wages for a sales person who generates $210,000 in sales for a year Total wares 3. Not available in Connect. 4. In terms of cost behaviour what type of cost do customer support staff wages represent? O Fixed Cost O Mixed cost Variable cost 5. Estimate the cost formula for a single customer Support employee's weekly wages, assuming no change to the salary or overtime rate described above. Assume the annual salary is based on working 50 weeks per year. X 35) 6. Calculate the total customer support staff wages for the most recent annual period Estimate total wages for the next annual period if a new staff member is ved Totale support af was Tatlanticuerportal wages 4 of 10!! Next > I E P3
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