90.2K

Verified Solution

Link Copied!

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 $$155$ each. Booth space at the convention hall costs $$14,000$ per show.

Required

a$.$ Sales at past trade shows have ranged between $400$ and $600$ software packages per show. Determine the average cost of sales per unit if Ms$.$ Jekyll sells $400,450,500,550,$ or $600$ units of Abacus at a trade show. Use the following chart to organize your answer. Is the cost of booth space fixed or variable?

b$.$ If Ms$.$ Jekyll wants to earn a $$58$ profit on each package of software she sells at a trade show, what price must she charge at sales volumes of $400,450,500,550,$ or $600$ units?

c$.$ Record the total cost of booth space if Ms$.$ Jekyll attends three, four, five, six, or seven trade shows. Is the cost of booth space fixed or variable relative to the number of shows attended?

d$.$ Ms$.$ Jekyll provides decorative shopping bags to customers who purchase software packages. Some customers take the bags; others do not. Some customers stuff more than one software package into a single bag. The number of bags varies in relation to the number of units sold; but the relationship is not proportional. Assume that Ms$.$ Jekyll uses $$32$ of bags for every $60$ software packages sold. What is the additional cost per unit sold? Is the cost fixed or variable?

Complete this question by entering your answers in the tabs below.

Required B

Required C

Required D

Record the total cost of booth space if Ms$.$ Jekyll attends three, four, five, six, or seven trade shows. Is the cost of booth space fixed or variable relative to the number of shows attended?

$\backslash$table$[[$Number of Trade Shows Attended,$3,4,5,6,7],[$Total cost of booth rental,$$,42,000,,,],[$The cost of booth space relative to the number of shows attended is a$,,,,,]]$

Answer & Explanation Solved by verified expert

See Answer