At a sales volume of 20,000 units, Choice Corporation's sales commissions (a cost that is variable with respect to sales volume) total $132,000.To the nearest whole cent, what should be the average sales commission per unit at a sales volume of 18,500 units? (Assume that this sales volume is within the relevant range.)

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Quizplus · Accepted Answer

The total sales commission is variable with respect to sales volume, so the commission per unit remains constant. At 20,000 units, the commission per unit is $132,000 / 20,000 = $6.60. Therefore, at 18,500 units, the commission per unit is still $6.60.

At a Sales Volume of 20,000 Units, Choice Corporation's Sales