At a sales volume of 42,000 units, Choice Corporation's sales commissions (a cost that is variable with respect to sales volume) total $596,400. To the nearest whole dollar, what should be the total sales commissions at a sales volume of 39,700 units? (Assume that this sales volume is within the relevant range.) (Round intermediate calculations to 2 decimal places.) Multiple Choice $580,070 $596,400 $563,740 $630,952
At a sales volume of 42,000 units, Choice Corporation's sales commissions (a cost that is variable with respect to sales volume) total $596,400. To the nearest whole dollar, what should be the total sales commissions at a sales volume of 39,700 units? (Assume that this sales volume is within the relevant range.) (Round intermediate calculations to 2 decimal places.) Multiple Choice $580,070 $596,400 $563,740 $630,952
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Solution
Variable cost is the cost which is changed in proportion to company produces. It is fixed in per unit but changed in totality.
Formulas-
Rate of commission = Total commission / units.
Commission amount = rate of commission * unit sold.
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