Question

At a sales volume of 34,000 units, Carne Company's sales commissions (a cost that is variable with respect to sales volume) total $741,200. To the nearest whole dollar, what should be the total sales commissions at a sales volume of 32,300 units

Answer 1

Answer: $704,140

Explanation:

Find the rate of commission per sales first:

= Commission / Number of units sold

= 741,200 / 34,000

= $21.80 commission per unit

If there are 32,300 units, the commission will be:

= 32,300 * 21.80

= $704,140