Given the following information:
Compensation - $55,000 Communications - $3,000
Automobile - $7,000 Meals & entertainment - $9,500
Overhead - $12,000 Promotional materials - $2,000
Calls per day - 3 Profit margin - 10%
Net selling days - 200
-The average cost per call is:

Question

Quizplus · Accepted Answer

The total expenses for the year can be calculated by adding up all of the expenses: 
$55,000 + $3,000 + $7,000 + $9,500 + $12,000 + $2,000 = $88,500

To find the total cost per call, we need to divide the total expenses by the total number of calls made during the year: 
$88,500 / (3 calls per day x 200 selling days) = $147.50

However, since the company has a 10% profit margin, we need to add 10% to the cost per call to find the average cost per call: 
$147.50 x 1.1 = $162.25

Therefore, the correct answer is not listed, and the closest option is B, $127.50, which is the closest to the result without taking into account the profit margin.

Given the Following Information