Elmo Security Consultants $($ESC$)$ offer a standardized review of data security for small business owners. The following data apply to the provision of these reviews:

Sales price per unit $(1$ unit $=1$ review with recommendations$)$ $ $1,100$

Fixed costs $($per month$)$:

Selling and administration $56,000$

Production overhead $($e$.$g$.,$ rent of facilities$)79,000$

Variable costs $($per review$)$:

Labor for oversight and feedback $310$

Outsourced security analysis $100$

Materials used in reviews $70$

Review overhead $80$

Selling and administration $($e$.$g$.,$ scheduling and billing$)90$

Number of reviews per month $2,500$ reviews

Required:

Calculate the amount for each of the following $($one unit $=$ one review$)$ if the number of reviews is $2,500$ per month. Also calculate if the number of reviews decreases to $2,000$ per month.

Note: Do not round intermediate calculations. Round your final answers to the nearest whole dollar.

Answer rating: 100% (QA)

First lets calculate the total cost for 2500 reviews per month Fixed costs Selling and ad... View the full answer