At a sales volume of 37,000 units, Choice Corporation's sales commissions (a cost that is variable...
At a sales volume of 37,000 units, Choice Corporation's sales commissions (a cost that is variable with respect to sales volume) total $754,800. To the nearest whole dollar, what should be the total sales commissions at a sales volume of 33,700 units? (Assume that this sales volume is within the relevant range.) (Round intermediate calculations to 2 decimal places.)
Homework Answers
Given, Assume that this sales volume is within the relevant range and sales commissions is variable with respect to sales volume
Hence,
Sales commission per unit = sales / Sales Volume
= $754,800 / 37,000 units
= $20.4 per unit
therefore,
Sales commission at a sales volume of 33,700 units
= $20.4 per unit x 33,700 units
= $687,480
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