Omar Corporation paid one of its sales representatives $4,300 for March. The representative receives a base salary plus $15 per unit sold. During March, the representative sold 200 units. To calculate the total monthly cost, the base salary is $4,300 minus $15 per unit sold times 200 units, which equals $1,300 base salary. The total monthly cost of the sales representative is $4,300.

1. Omar Corporation paid one of its sales representatives $4,300 during the month of March. The
rep is paid a base salary plus $15 per unit of product sold. During March, the rep sold 200 units.
Calculate the total monthly cost of the sales representative
Solution
Hi,
Please find the detailed answer as follows:
Notes:
Fixed Cost = 4300 - 200*15 = 1300
Thanks.
Total Variable Cost Total Fixed Cost Total Salary Cost
April 3600 1300 4900
May 2250 1300 3550
June 3750 1300 5050
July 2400 1300 3700