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Better Finance, based in San Francisco, California, provides leasing and credit solutions to consumers and small businesses. If Better Finance wants to distribute [tex]$\$[/tex]55,000[tex]$ worth of overhead by sales, calculate the overhead expense for each department given the following sales data:

\begin{tabular}{lr}
New customer sales (NCS) & $[/tex]\[tex]$4,830,000$[/tex] \\
Current customer new sales (CCNS) & [tex]$\$[/tex]4,830,000[tex]$ \\
Current customer loan extension sales (CCLES) & $[/tex]\[tex]$4,140,000$[/tex] \\
\end{tabular}

\begin{tabular}{|l|l|}
\hline
Department & Overhead Expense \\
\hline
New customer sales & \\
\hline
Current customer new sales & \\
\hline
Current customer loan extension sales & \\
\hline
\end{tabular}

Sagot :

GinnyAnsweridn
Sure, let's calculate the overhead expense for each department step-by-step.

### Step 1: Define the total sales
First, we need to find the total sales across all departments.

[tex]\[ \text{Total Sales} = \text{NCS Sales} + \text{CCNS Sales} + \text{CCLES Sales} \][/tex]

Given data:
- New Customer Sales (NCS) = \[tex]$4,830,000 - Current Customer New Sales (CCNS) = \$[/tex]4,830,000
- Current Customer Loan Extension Sales (CCLES) = \[tex]$4,140,000 \[ \text{Total Sales} = 4,830,000 + 4,830,000 + 4,140,000 = 13,800,000 \] ### Step 2: Calculate the overhead expense for each department We need to distribute the total overhead amount (\$[/tex]55,000) proportionally based on each department's sales.

#### Overhead for New Customer Sales (NCS)

[tex]\[ \text{Overhead}_{\text{NCS}} = \left(\frac{\text{NCS Sales}}{\text{Total Sales}}\right) \times \text{Total Overhead} \][/tex]

[tex]\[ \text{Overhead}_{\text{NCS}} = \left(\frac{4,830,000}{13,800,000}\right) \times 55,000 \][/tex]

[tex]\[ \text{Overhead}_{\text{NCS}} = 19,250 \][/tex]

#### Overhead for Current Customer New Sales (CCNS)

[tex]\[ \text{Overhead}_{\text{CCNS}} = \left(\frac{\text{CCNS Sales}}{\text{Total Sales}}\right) \times \text{Total Overhead} \][/tex]

[tex]\[ \text{Overhead}_{\text{CCNS}} = \left(\frac{4,830,000}{13,800,000}\right) \times 55,000 \][/tex]

[tex]\[ \text{Overhead}_{\text{CCNS}} = 19,250 \][/tex]

#### Overhead for Current Customer Loan Extension Sales (CCLES)

[tex]\[ \text{Overhead}_{\text{CCLES}} = \left(\frac{\text{CCLES Sales}}{\text{Total Sales}}\right) \times \text{Total Overhead} \][/tex]

[tex]\[ \text{Overhead}_{\text{CCLES}} = \left(\frac{4,140,000}{13,800,000}\right) \times 55,000 \][/tex]

[tex]\[ \text{Overhead}_{\text{CCLES}} = 16,500 \][/tex]

### Summary
Based on our computations, the overhead expenses for each department are as follows:

[tex]\[ \begin{tabular}{|l|r|} \hline Department & Overhead Expense \\ \hline New Customer Sales (NCS) & \$19,250 \\ \hline Current Customer New Sales (CCNS) & \$19,250 \\ \hline Current Customer Loan Extension Sales (CCLES) & \$16,500 \\ \hline \end{tabular} \][/tex]

These calculations show the distribution of the \$55,000 total overhead across the three departments, proportionate to their respective sales figures.
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