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?
Lasht earns $68.75 − $21.49 = $47.26 per phone before commissions. The 641 phones sold bring in $47.26 × 641 = $30,293.66 in gross margin, while commissions total (214 × $10.25) + (176 × $8.90) + (251 × $9.65) = $6,182.05. Subtracting commissions and $14,350 in overhead gives $30,293.66 − $6,182.05 − $14,350 = $9,761.61. The correct choice is A, $9,761.61.
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