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:
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) $4,000
B) $32,000
C) $80,000
D) $16,000
Correct Answer:
Verified
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