Question

ales at past trade shows have ranged between 600 and 800 software packages per show. Determine the average cost of sales per unit if Ms. Jekyll sells 600, 650, 700, 750, or 800 units of Abacus at a trade show. Use the following chart to organize your answer. Is the cost of booth space fixed or variable

Answer 1

Incomplete question. Here's the actual question;

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 $190 each. Booth space at the convention hall costs $13,000 per show. Required

Sales at past trade shows have ranged between 600 and 800 software packages per show. Determine the average cost of sales per unit if Ms. Jekyll sells 600, 650,700, 750, or 800 units of Abacus at a trade show.

Answer:

For 600 unit sold=$211.66

For 650 unit sold=$210

For 700 unit sold=$208.57

For 750 unit sold=$207.33

For 800 unit sold=$206.25

Explanation:

To determine the average cost of sales per unit we must bear in mind the cost Rita incurs in renting the sales booth $13,000.

For 600 unit sold

Average cost of sales per unit= 13,000 + (190 x 600) / 600 = $211.66

For 650 unit sold

Average cost of sales per unit= 13,000 + (190 x 650) / 600 = $210

For 700 unit sold

Average cost of sales per unit= 13,000 + (190 x 700) / 600 = $208.57

For 750 unit sold

Average cost of sales per unit= 13,000 + (190 x 750) / 600 = $207.33

For 800 unit sold

Average cost of sales per unit= 13,000 + (190 x 800) / 600 = $206.25

The cost of booth is fixed.