A product cost is composed of the following:

The product sells for $40 and a 15% commission is paid to a salesperson for every unit sold.Management accountants also estimate that storage cost per unit averages $0.75 per unit.What is the full cost of the product?
A)$14
B)$22
C)$28.75
D)$28.00

Question

A product cost is composed of the following:

The product sells for $40 and a 15% commission is paid to a salesperson for every unit sold.Management accountants also estimate that storage cost per unit averages $0.75 per unit.What is the full cost of the product?
A)$14 
B)$22 
C)$28.75 
D)$28.00

Quizplus · Accepted Answer

$11 + $3 + $8 + ($40 x 15%)+ $0.75 = $28.75

A Product Cost Is Composed of the Following