Determine the cost-volume formula

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In an effort to control selling expenses, the Sell Big Corporation wants to develop a cost-volume formula for its selling expenses. An investigation of individual expense items shows

Sales commissions

Fixed

-------

Variable

30% of sales

Advertising

$50,000

-------

Travel and entertainment

30,000

5% of sales

Sales staff salaries

12,000

-------

Depreciation, rent, and insurance -sales office

5,000

-------

Determine the cost-volume formula in the form of y' = a + bx.

 

Reference no: EM13512930

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