Question

Bramble Gravity Grips produces spike sets for track shoes. CEO Brittany Bramble has gathered the following information about the company's sales volume and marketing cost for the past six months: January February March April May June Sales Volume 65,600 49,600 71,100 75,600 68,600 77,800 Total Marketing Costs $8,158 $6,634 $8.560 $8,655 $8,310 $8,890 (a) Identify the high and low points. Machine Hours $ High point $ Low point $

Answer 1

	Sales Volume	Marketing Cost
High Point	77,800	$8,890
Low Point	49,600	$6,634

Variable cost per spike set = (Highest activity cost - Lowest activity cost)/(Highest activity - Lowest activity)

= (8,890-6,634)/(77,800-49,600)

= 2,256/28,200

= $0.08 per spike set

Variable marketing cost = $0.08 per spike set sold

Kindly comment if you need further assistance. Thanks‼!