Answer:
Direct costs of the Cosmetics department are:
b. $46,700
comprising Cosmetics Department manager's salary--Northridge Store
$4,270
Cosmetics Department cost of sales--Northridge Store
$36,700
Cosmetics Department sales commissions--Northridge Store
$5,730.
3- (a) Total variable cost is $ 247,230 ( 241,200/4000 = 60.3*4100 = 247,230)
(b) total fixed cost $ 107,994 ( the total fixed cost does not change with the change in output)
(c) The total cost is (247,230+107994 = 355224)
(d) the average variable cost per unit 60.3
(e) the average fixed cost per unit ( 107,994/4,100 = 26.34) the FC at per unit tends to decrease with the increase in output.
(f) the average total cost per unit ( 355224/4100 = 86.64) i.e. the total cost/total units
Now, next question
4- Overhead cost assigned to product V09X is $12274.72
(83*71+74.29*22+9.61*494)
6- If the company sells 6,500 units, its net operating income should be closest to: $ 26,500
Explanation: