Veasy Corporation paid one of its sales representatives $7,500 during the month of March. The rep is paid a base salary plus $25 per unit of product sold. During March, the rep sold 200 units. Calculate the total monthly cost of the sales representative.

Question

Howard Harris

Business

17 October, 08:30

Veasy Corporation paid one of its sales representatives $7,500 during the month of March. The rep is paid a base salary plus $25 per unit of product sold. During March, the rep sold 200 units. Calculate the total monthly cost of the sales representative.

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Answers (1)

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Luna Griffin · Answer 1

Total Cost = $12,500

Explanation:

Giving the following information:

Veasy Corporation paid one of its sales representatives $7,500 during March. The rep is paid a base salary plus $25 per unit of product sold. During March, the rep sold 200 units.

We need to separate fixed costs from variable costs

Fixed costs = 7,500

Variable Costs = 25*200 = 5,000

Total = $12,500