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?

Question

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?

Quizplus · Accepted Answer

D)
Sales units 40,000
Sales price 4.00
Sales 160,000
Commission rate 10%
Commission 16,000 (160,000 × .10)

Stanley's Candies Is Considering Building a New Plant in Europe