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bernie2981 bernie2981
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8 years ago
Garfield Corporation is considering building a new plant in Canada. It predicts sales at the new plant to be 50,000 units at $5.00/unit. Below is a listing of estimated expenses:

Category   Total Annual Expenses   % of Annual Expense that are Fixed
Materials   $50,000   10%
Labor   $90,000   20%
Overhead   $40,000   30%
Marketing/Admin   $20,000   50%

A Canadian 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 Canadian contractor expect to make in commissions?
A) $75,000
B) $225,000
C) $5,000
D) $25,000
Textbook 
Managerial Accounting

Managerial Accounting


Edition: 4th
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nucleinuclei
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8 years ago
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bernie2981 Author
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#2
8 years ago
Answers my question perfectly.
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#3
4 years ago
good job
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