Janet Garcia is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $8,700. The booth will be open 29 hours during the trade show. Ms. Garcia also plans to add a new product line, ProOffice, which will cost $190 per package. She will continue to sell the existing product, EZRecords, which costs $93 per package. Ms. Garcia believes that the salesperson will spend approximately 19 hours selling EZRecords and 10 hours marketing ProOffice. Required: a. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 86 units of EZRecords and 58 units of ProOffice. (Round "Cost per unit" answers to 2 decimal places.) EZRecords ProOffice Total cost of sales Cost per unit b. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 199 units of EZRecords and 99 units of ProOffice. (Round "Cost per unit" answers to 2 decimal places.) ProOffice EZRecords Total cost of sales Cost per unit

Question
Janet Garcia is considering expanding her business. She plans to hire a salesperson to
cover trade shows. Because of compensation, travel expenses, and booth rental, fixed
costs for a trade show are expected to be $8,700. The booth will be open 29 hours
during the trade show. Ms. Garcia also plans to add a new product line, ProOffice, which
will cost $190 per package. She will continue to sell the existing product, EZRecords,
which costs $93 per package. Ms. Garcia believes that the salesperson will spend
approximately 19 hours selling EZRecords and 10 hours marketing ProOffice.
Required:
a. Determine the estimated total cost and cost per unit of each product, assuming that
the salesperson is able to sell 86 units of EZRecords and 58 units of ProOffice.
(Round "Cost per unit" answers to 2 decimal places.)
EZRecords
ProOffice
Total cost of sales
Cost per unit
b. Determine the estimated total cost and cost per unit of each product, assuming that
the salesperson is able to sell 199 units of EZRecords and 99 units of ProOffice.
(Round "Cost per unit" answers to 2 decimal places.)
ProOffice
EZRecords
Total cost of sales
Cost per unit
Expand
Transcribed Image Text

Janet Garcia is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $8,700. The booth will be open 29 hours during the trade show. Ms. Garcia also plans to add a new product line, ProOffice, which will cost $190 per package. She will continue to sell the existing product, EZRecords, which costs $93 per package. Ms. Garcia believes that the salesperson will spend approximately 19 hours selling EZRecords and 10 hours marketing ProOffice. Required: a. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 86 units of EZRecords and 58 units of ProOffice. (Round "Cost per unit" answers to 2 decimal places.) EZRecords ProOffice Total cost of sales Cost per unit b. Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 199 units of EZRecords and 99 units of ProOffice. (Round "Cost per unit" answers to 2 decimal places.) ProOffice EZRecords Total cost of sales Cost per unit

Expert Answer

Want to see the step-by-step answer?

Check out a sample Q&A here.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.
Tagged in
Business
Accounting

Cost Accounting

Related Accounting Q&A

Find answers to questions asked by students like you.

Q: What financial statement are the following posted on? 1) Net cash flows from operations 2) Sales 3) ...

A: Financial Statements are reports that convey the business activities and financial performance of th...

Q: I can not figure out how to work the attached problem

A: Step 1: Determine the budgeted sales revenue

Q: The following is a list of account titles and amounts (in millions) reported at December 27, 2015, b...

A: Balance sheet refers to the statement of a company which shows the total value of liabilities & ...

Q: Munoz Corporation incurs the following annual fixed costs: Item Cost $ 62,000 Depreciation Officers'...

A: In order to compute the fixed cost per unit, the total annual fixed cost needs to be determined. The...

Q: The T-accounts for Equipment and the related Accumulated Depreciation—Equipment for Luo Company at t...

A: Formula to calculate cash flow from sale of equipment:

Q: My text book is  Hospitality Industry Financial Accounting (4th edition). I am in chapter 8 -- CASH ...

A: Bank reconciliation:Bank statement is prepared by bank, while companies maintains its own records fr...

Q: Pleasie tell me if the following are assets liabilities or equity and also if they are a real or nom...

A: Classification of the items given:

Q: Support department cost allocation—reciprocal services method Davis Snowflake & Co. produces Chr...

A: Calculate the maintenance department cost and security department cost.

Q: 1-7  Please identify each type of business 1) Jean Johnson's home health care business does not have...

A: Types of BusinessThere are three main types of business organizations:Sole ProprietorshipPartnership...

Q: please see attachemnet.  There is a part a & oart b in the attached file.

A: Formulas Used:Payback period = Initial Investment ÷ Annual Cash InflowAverage Investment = (Initial ...

Q: Shadee Corp. expects to sell 640 sun visors in May and 350 in June. Each visor sells for $25. Shadee...

A: The income statement is a financial statement that represents the financial performance of the compa...

Q: At the end of the current year. Accounts Receivable has a balance of $4,375,000; Allowance for Doubt...

A: Accounts receivable is the sum owed to an organization in lieu of the products or services provided ...

Q: Calculate PayrollBreakin Away Company has three employees-a consultant, a computer programmer, and a...

A: Gross Pay: The total amount such as salary, wages, commissions, overtime, and bonus paid by an emplo...

Q: Sales Mix and Break-Even Sales Dragon Sports Inc. manufactures and sells two products, baseball bats...

A: Break-Even Sales (Unit):The Break-even number in units, as the name suggest, is the number of units ...

Q: Margin of Safety The Rachel Company has sales of $500,000, and the break-even point in sales dollars...

A: Margin of safety: It is a measure that shows the probability of decrease in the sales level before a...

Q: Smithson, Inc. decided to implement the activity-based costing approach and was quite successful in ...

A: Activity based costing is a cost allocation method where overhead and indirect cost are allocated on...

Q: Vaughn Manufacturing's contribution margin is $20 per unit for Product A and $35 for Product B. Prod...

A: Formula to compute the contribution margin per unit of limited resources for each product.

Q: 3. Homework Chapter 10

A: Stockholders’ equity is the measure of assets staying in a business after the sum total of the liabi...

Q: Equivalent Units of Materials Cost The Filling Department of Eve Cosmetics Company had 2,400 ounces ...

A: Process Costing: Process costing is a method of cost accounting, which is used when the production i...

Q: Schwer, Inc. issued $500,000 of 10%, 15-year bonds at 95 on July 1, 2012. Interest is payable semian...

A: Bonds may be issued at discount when the interest on the bonds is higher than the market interest ra...

Q: Process Cost Journal Entries The cost of materials transferred into the Rolling Department of Keysto...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: Lease or sell Plymouth Company owns equipment with a cost of $550,000 and accumulated depreciation o...

A: Difference between Lease and Sale:Leasing is an arrangement wherein the owner of the asset permits a...

Q: Selected financial data for the Micco Community Health Clinic follows for a volume of 120,000 patien...

A: Variable costs: Variable costs are those costs which change in proportion to change in the productio...

Q: Only need to do part B of the question

A: Required journal entries:

Q: Talmart Corporation has met all production requirements for the current month and has an opportunity...

A: Generation Capacity is the volume of items or services that can be created by a business by utilizin...

Q: If Morton Company expects to sell VCR's at $100 a unit with variable costs of $60 per unit and DVD's...

A: Formula to compute the weighted contribution margin:

Q: Brief Exercise 8-07 Consider these transactions: (Credit account titles are automatically indented ...

A: (a)Prepare journal entry in the books of Blossom Company: 

Q: During 2020, Metlock, Inc. reported net sales of $2,850,900 and net income of $1,550,000. Its balanc...

A: Asset turnover ratio calculates how much the company was able to generate revenue using it's assets....

Q: A hotel’s food department statement shows the following:  Food revenue                             ...

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and s...

Q: On July 1, 2020, Splish Brothers Inc. invested $640,710 in a mine estimated to have 791,000 tons of ...

A: 1.Calculate the depletion cost per unit.

Q: Compute the amount of ending inventory The Shirt Shop would report on the balance sheet, assuming th...

A: Inventory refers to the physical quantities of raw material, work-in progress and finished goods in ...

Q: Brief Exercise 9-08 Pharoah Company sells office equipment on July 31, 2022, for $23,160 cash. The ...

A: Calculate the loss on disposal of office equipment.

Q: In Problem 5-5 if the numbers where changed to this.    Top Company holds 90 percent of Bottom Comp...

A: In order to consolidate, the intercompany sales and cost of goods sold must be eliminated.

Q: Number 3 City University uses a process cost system to accumulate costs incurred in handling student...

A: a. Compute the equivalent units of service for material and conversion costs:

Q: Equivalent Units of Conversion Costs The Filling Department of Eve Cosmetics Company had 3,800 ounce...

A: Calculate total equivalent units for conversion costs under FIFO method:

Q: Make-or-Buy Decision Somerset Computer Company has been purchasing carrying cases for its portable c...

A: In make or buy decision, we need to compare the unit cost of producing and the unit cost of buying t...

Q: Number 1 An analysis of the accounts of Williams Company reveals the following manufacturing cost da...

A: (a)Prepare cost of goods manufactured schedule: 

Q: Margin of Safety a. If Canace Company, with a break-even point at $386,900 of sales, has actual sale...

A: a. 1. Calculate the margin of safety (in Dollars).

Q: The Kerr-Graham Corporation had two operating divisions, one manufacturing cooking utensils and the ...

A: Definition of Income Statement:Income Statement or profit & loss account is one of the financial...

Q: Margin of Safety a. If Canace Company, with a break-even point at $386,900 of sales, has actual sale...

A: Margin of Safety represents the value of sales over and above the break-even point.Margin of Safety ...

Q: Issued Bonds at a Discount (Effective Interest) Crafty Corporation issued $475,000 of 5%, 7-year bon...

A: Click to see the answer

Q: 2. Homework Chapter 10

A: In Stock split offers are given to the present investor's in extent of their current offers. It is u...

Q: Novak Company’s record of transactions for the month of April was as follows. Purchases   Sale...

A: Inventory Valuation:"LIFO" stands for last-in, first-out, meaning that the recently purchased invent...

Q: Lake Community College gives its faculty the option of receiving the balance of their contract at th...

A: Compute the employer's FICA taxes for the pay period ending May 17 by using payroll register.

Q: Joint Operation for 2018 Debit: Nov. 6 Mercandise-Peter ₱8,500                    8 Mercandise-Neil ...

A: Hence gain is ₱ 5,970 which is calculated by deducting income from expenses.

Q: Notes Payable Renchen Company, which manufactures steel tubing and casing for automobile production,...

A: 1. prepare the journal entry to record the borrowing transaction:

Q: (Fifo, Lifo, Average-Cost Inventory) Shania Twain Company was formed on December 1, 2016.  The follo...

A: Prepare schedules to compute the ending inventory at March 31, 2017 under each of the given inventor...

Q: My text book is  Hospitality Industry Financial Accounting (4th edition). I am in chapter 12 -- CURR...

A:  1. Required journal entry:

Q: The following information is available for the first month of operations of Bahadir Company, a manuf...

A: Cost of goods sold has been calculated by taking the gross profit subtracted from the sales.

Q: Cash Budget The controller of Bridgeport Housewares Inc. instructs you to prepare a monthly cash bud...

A: A cash budget is prepared to ensure the sufficiency of cash in the company. It is prepared to calcul...