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