Sales commissions are $5,000 when 1,000 units are sold, and $10,000 when 2,000 units are sold. Using the high-low method, what is the variable portion of sales salaries and commission? a. $0.05 per unit b. $0.50 per unit c. $50 per unit d. $5 per unit

Sales commissions are $5,000 when 1,000 units are sold, and $10,000 when 2,000 units are sold. Using the high-low method, what is the variable portion of sales salaries and commission? a. $0.05 per unit b. $0.50 per unit c. $50 per unit d. $5 per unit

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter7: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 46E: Lotts Company produces and sells one product. The selling price is 10, and the unit variable cost is...

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Question

I need answer of this question solution general accounting

Sales commissions are $5,000 when 1,000 units are sold, and
$10,000 when 2,000 units are sold.
Using the high-low method, what is the variable portion of sales
salaries and commission?
a. $0.05 per unit
b. $0.50 per unit
c. $50 per unit
d. $5 per unit

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