At a sales volume of 36,500 units, Choice Corporation's sales commissions (a cost that is variable with respect to sales volume) total $576,700.To the nearest whole cent, what should be the average sales commission per unit at a sales volume of 41,800 units? (Assume that this sales volume is within the relevant range.)

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Quizplus · Accepted Answer

The average sales commission per unit is calculated by dividing the total sales commissions by the number of units. At 36,500 units, the commission per unit is $576,700 / 36,500 = $15.80. Since the commission is variable and within the relevant range, it remains the same at 41,800 units.

At a Sales Volume of 36,500 Units, Choice Corporation's Sales