GABRIANA PHARMA To our hardworking medical representatives: I am glad to inform you of our new policy on sales commissions. Please see them below: . Selling 1-50 boxes of our new drug, the medical representative gets P3,000 commission. Selling 51-100 boxes, commission becomes P5,000. Being able to sell 101-150 or more boxes allows a commission of P7,500. Thank you for your continued support. The commission to the medical representatives is best described by which of the following cost behaviors? O • Fixed cost O.Variable cost O . Mixed cost O • None of the above

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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GABRIANA
PHARMA
To our hardworking medical representatives:
I am glad to inform you of our new policy on sales commissions.
Please see them below:
. Selling 1-50 boxes of our new drug, the medical representative
gets P3,000 commission.
Selling 51-100 boxes, commission becomes P5,000.
Being able to sell 101-150 or more boxes allows a commission
of P7,500.
Thank you for your continued support.
The commission to the medical representatives is best described by which of the following cost behaviors?
• Fixed cost
• Variable cost
• Mixed cost
• None of the above
Transcribed Image Text:GABRIANA PHARMA To our hardworking medical representatives: I am glad to inform you of our new policy on sales commissions. Please see them below: . Selling 1-50 boxes of our new drug, the medical representative gets P3,000 commission. Selling 51-100 boxes, commission becomes P5,000. Being able to sell 101-150 or more boxes allows a commission of P7,500. Thank you for your continued support. The commission to the medical representatives is best described by which of the following cost behaviors? • Fixed cost • Variable cost • Mixed cost • None of the above
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