Question

Arderi Air Conditioning sells one primary model of air conditioner. Each unit of this model costs them $61.25 to produce, but it sells for $142.50 apiece. Arderi Air Conditioning employs three salespeople, each of whom earns a different commission per unit sold, as shown on the following table. Salesperson Commission/Sale Mary $36.25 Jay $28.50 Abby $25.75 Last month, Arderi Air Conditioning had a total fixed overhead cost of $7,622.25. It is known that one salesperson sold 51 units, one salesperson sold 43 units, and one salesperson sold 54 units. Which arrangement of sales would cause Arderi Air Conditioning to break even?
a.
Mary sells 54 units; Jay sells 51 units; Abby sells 43 units
b.
Mary sells 54 units; Jay sells 43 units; Abby sells 51 units
c.
Mary sells 43 units; Jay sells 51 units; Abby sells 54 units
d.
Mary sells 43 units; Jay sells 54 units; Abby sells 51 units

Answer 1

THE CORRECT ANSWER IS:

Mary sells 43 units; Jay sells 51 units; Abby sells 54 units



HOPE THIS HELPFUL. :)

Answer 2

Answer:

The correct option is C.

Step-by-step explanation:

Break even is a condition where revenue is equal to the cost. In other word when the profit is zero that point is known as break even point.

Each unit of this model costs them $61.25 to produce, but it sells for $142.50 apiece.

Total number of items sold is

$51+43+54=148$

Total revenue of 148 items is

$\text{Total revenue}=148\times 142.50 =21090$

Total variable cost of 148 items is

$\text{Variable cost}=148\times 61.25 =9065$

It is given that Last month, Arderi Air Conditioning had a total fixed overhead cost of $7,622.25 and the Commission of Mary, Jay, Abby are $36.25, $28.50, $25.75 respectively.

Let Mary sells 43 units; Jay sells 51 units; Abby sells 54 units, then the total commission is

$\text{Total commission}=43\cdot36.25+51\cdot28.50+54\cdot25.75=4402.75$

Total cost of 148 items is

$\text{Total cost}=\text{Fixed cost}\text{Variable cost}+\text{Total commission}$

$\text{Total cost}=7622.25+9065+4402.75$

$\text{Total cost}=21090$

$\text{Total cost}=\text{Total revenue}$

Total revenue is equal to the total cost. It means for break eve condition Mary sells 43 units; Jay sells 51 units; Abby sells 54 units.

Therefore the correct option is C.