Faye, George, and Hannah are salespeople working at Lasht Cellular. It costs Lasht Cellular $21.49 per phone to stock a certain brand of phone, which they sell for $68.75. The three salespeople earn differing amounts of commission per phone sold, based on their seniority. The following table shows their respective sales in the past month.

Salesperson

Phones Sold

Commission/Phone

Faye

214

$10.25

George

176

$8.90

Hannah

251

$9.65

If Lasht Cellular had fixed overhead costs of $14,350 last month, how much profit did it gain last month?

a.

$9,761.61

b.

$15,943.66

c.

$22,125.71

d.

$23,536.70

Question

Kali Wright

Mathematics

26 February, 11:51

Faye, George, and Hannah are salespeople working at Lasht Cellular. It costs Lasht Cellular $21.49 per phone to stock a certain brand of phone, which they sell for $68.75. The three salespeople earn differing amounts of commission per phone sold, based on their seniority. The following table shows their respective sales in the past month.

Salesperson

Phones Sold

Commission/Phone

Faye

214

$10.25

George

176

$8.90

Hannah

251

$9.65

If Lasht Cellular had fixed overhead costs of $14,350 last month, how much profit did it gain last month?

a.

$9,761.61

b.

$15,943.66

c.

$22,125.71

d.

$23,536.70

+2

Answers (2)

Know the Answer?

Cruz Knox · Answer 1

A. 9,761.61 is the correct answer to this question

Blaze Lloyd · Answer 2

In order to get the profit, we must compute first the fixed cost

Fixed cost = storage cost + overhead cost

storage cost = total phones x storage fee

= (214+176+251) x$21.49

=$13775.09

fixed cost = $13775.09+$14350

= $28125.09

Next we compute the net sales

net sales = total sales - commision

total sales = 641 x$68.75 = $44068.75

commision = (214x$10.25) + (176x$8.9) + (251x$9.65)

=6182.05

net sales = $44068.75-6182.05 = $37886.7

profit = net sales - fixed cost

profit = $37886.7-$28125.09

profit = $9761.61

The profit for Lasht cellular is $9761.61