Explain Answer Show workSolutionSince there is 32 cost incur

Explain Answer Show work

Solution

Since there is $32 cost incurred for every 52 package sold, so it will change in total for every additional qty of 52 units sold.

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Sales Volume in Units
500 550 600 650 700
Total cost of software ( $190 x NO of units sold) $95,000 104500 114000 123500 133000
Total cost of booth rental          13,000              13,000          13,000          13,000              13,000
Total cost of sales $108,000 $117,500 $127,000 $136,500 $146,000
Average cost per unit $     216.00 $          213.64 $     211.67 $     210.00 $          208.57
The cost of booth space is a Fixed Cost
Sales Volume 500 550 600 650 700
Price per package (Av. Cost PU + $53) $     269.00 $          266.64 $     264.67 $     263.00 $          261.57
Number of trade shows attended
3 4 5 6 7
Total cost of booth rental ($13000 x No of trade shows) $39,000 $52,000 $65,000 $78,000 $91,000
The cost of booth space relative to the number of shows attended is a Variable cost
Additional Cost $          0.59 Per unit
The cost is a Variable cost

Since there is $32 cost incurred for every 52 package sold, so it will change in total for every additional qty of 52 units sold.

Note: I have tried my best for correct solution, still you need any further help please ask in comment. Thanks

Explain Answer Show workSolutionSince there is $32 cost incurred for every 52 package sold, so it will change in total for every additional qty of 52 units sold

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