PCR Help June2009

debbieh

Please could some one help with Section 1 Task 1.1 (b) Commission earned by sales representatives for each garment sold at catalogue price, Please could any one explain on how to work the answer out.

And any tips with learning the differance between Variable Costs Step Costs, and Semi Variable, any reversion notes would be handy.

Thanks

SandyHood

This is a semivariable cost
You are told the total (variable plus fixed) cost
You can calculate the fixed (no of reps x guaranteed pay per person per quarter)
So the difference is the total variable cost

Total variable cost divided by total sales units at catalogue price = variable cost per unit