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bernie2981 bernie2981
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Posts: 3810
8 years ago
Stanley's Candies is considering building a new plant in Europe. It predicts sales at the new plant to be 40,000 units at $4.00/unit. Below is a listing of estimated expenses:

Category   Total Annual Expenses   % of Annual Expenses that are Fixed
Materials   $20,000   10%
Labor   $30,000   20%
Overhead   $50,000   40%
Marketing/Admin   $10,000   60%

A European firm was contracted to sell the product and will receive a commission of 10% of the sales price. No U.S. home office expenses will be allocated to the new facility.

How much does the European contractor expect to make in commissions?
A) $16,000
B) $4,000
C) $32,000
D) $80,000
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
Author:
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nucleinuclei
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8 years ago
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bernie2981 Author
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8 years ago
Wow! Thank you
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