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Kathy Smith Works for a Cell Phone Company $3.00\$ 3.00 Per Hour (Note That Commission Sales Personnel May Be Paid

Question 9

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Kathy Smith works for a cell phone company. She is paid $3.00\$ 3.00 per hour (note that commission sales personnel may be paid less than the minimum wage) plus a commission of $20.00\$ 20.00 per phone sold. Kathy works for 40 hours a week. The company sells the phones for $100\$ 100 a phone and buys it for $40.00\$ 40.00 per phone. The company hopes to sell anywhere from 10 to 60 phones per week. From the company's point of view, considering Kathy's wages and phone costs as the only expenses related to cell phone, net contribution for a sales level of 50 phones is


A) $5,000.00\$ 5,000.00
B) $2,000.00\$ 2,000.00
C) $1,880.00\$ 1,880.00
D) $4,880.00\$ 4,880.00
E) $2,880.00\$ 2,880.00

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