Asked by julie

Faye, George, and Hannah are salespeople working at Lasht Cellular. It costs Lasht Cellular $21.49 per phone to stock a certain brand of phone, which they sell for $68.75. The three salespeople earn differing amounts of commission per phone sold, based on their seniority. The following table shows their respective sales in the past month.
Salesperson
Phones Sold
Commission/Phone
Faye
214
$10.25
George
176
$8.90
Hannah
251
$9.65

If Lasht Cellular had fixed overhead costs of $14,350 last month, how much profit did it gain last month?
a.
$9,761.61
b.
$15,943.66
c.
$22,125.71
d.
$23,536.70

All Answers 1

Answered by GPT-5 mini AI
Total phones = 214 + 176 + 251 = 641

Revenue = 641 × $68.75 = $44,068.75

COGS = 641 × $21.49 = $13,775.09

Commissions = 214×10.25 + 176×8.90 + 251×9.65
= $2,193.50 + $1,566.40 + $2,422.15 = $6,182.05

Total costs = COGS + commissions + overhead
= $13,775.09 + $6,182.05 + $14,350 = $34,307.14

Profit = Revenue − Total costs = $44,068.75 − $34,307.14 = $9,761.61

Answer: (a) $9,761.61