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Hannah Ortega is considering expanding her business. She plans to hire a salesperson to cover trade shows. Because of compensation, travel expenses, and booth rental, fixed costs for a trade show are expected to be $6,600. The booth will be open 20 hours during the trade show. Ms. Ortega also plans to add a new product line, ProOffice, which will cost $189 per package. She will continue to sell the existing product, EZRecords, which costs $92 per package. Ms. Ortega believes that the salesperson will spend approximately 10 hours selling EZRecords and 10 hours marketing ProOffice.
Required Problem 1: Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 90 units of EZRecords and 57 units of ProOffice.
Problem 2: Determine the estimated total cost and cost per unit of each product, assuming that the salesperson is able to sell 191 units of EZRecords and 109 units of ProOffice.
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