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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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
Transcribed Image Text: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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