Answer the following questions using the information below:
Hewitt Sporting Goods Store is a small company that has hired you to perform some management advisory services.The following information pertains to 2018 operations.
$\begin{array}{lr}
\text { Sales (2000 cricket bats) } & \$ 900000 \
\text { Cost of goods sold } & 400000 \
\text { Store manager's salary per year } & 70000 \
\text { Operating costs per year } & 157000 \
\text { Advertising and promotion per year } & 15000 \
\text { Commissions ( } 4 \% \text { of sales) } & 36000
\end{array}$
-What are the estimated total costs if Hewitt expects to sell 3000 units next year?
A)$896 000
B)$1 017 000
C)$678 000
D)$799 000

Question

Answer the following questions using the information below:
Hewitt Sporting Goods Store is a small company that has hired you to perform some management advisory services.The following information pertains to 2018 operations.
 $\begin{array}{lr}
\text { Sales (2000 cricket bats) } & \$ 900000 \
\text { Cost of goods sold } & 400000 \
\text { Store manager's salary per year } & 70000 \
\text { Operating costs per year } & 157000 \
\text { Advertising and promotion per year } & 15000 \
\text { Commissions ( } 4 \% \text { of sales) } & 36000
\end{array}$
-What are the estimated total costs if Hewitt expects to sell 3000 units next year?
A)$896 000
B)$1 017 000
C)$678 000
D)$799 000

Quizplus · Accepted Answer

The total costs are the sum of the cost of goods sold, store manager's salary, operating costs, advertising and promotion, and commissions. The cost of goods sold is 400000/2000 * 3000 = 600000. The store manager's salary is 70000. The operating costs are 157000. The advertising and promotion is 15000. The commissions are 36000/2000 * 3000 = 54000. The total costs are 600000 + 70000 + 157000 + 15000 + 54000 = 896000.

Answer the Following Questions Using the Information Below: Hewitt Sporting

Answer the Following Questions Using the Information Below:
Hewitt Sporting