Given the following information:
Compensation - $90,000 Direct Communications - $5,000
Automobile - $7,000 Meals & entertainment - $6,000
Overhead - $12,000 Promotional materials - $10,000
Calls per day - 5 Profit margin - 10%
Net selling days - 200
-The average cost per call is:

Question

Quizplus · Accepted Answer

The total cost is $130,000 ($90,000 + $5,000 + $7,000 + $6,000 + $12,000 + $10,000). With 5 calls per day over 200 days, there are 1,000 calls. The average cost per call is $130,000 / 1,000 = $130.00. However, considering the profit margin of 10%, the cost per call should be $130.00 / 1.10 = $118.18, rounded to $118.00.

Given the Following Information