Garfield Corporation is considering building a new plant in Canada.It predicts sales at the new plant to be 50,000 units at $5.00/unit.Below is a listing of estimated expenses:

A Canadian 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 Canadian contractor expect to make in commissions?

Question

Garfield Corporation is considering building a new plant in Canada.It predicts sales at the new plant to be 50,000 units at $5.00/unit.Below is a listing of estimated expenses:

A Canadian 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 Canadian contractor expect to make in commissions?

Quizplus · Accepted Answer

A)
Sales units 50,000
Sales price 5
Total sales 250,000
Commission 10%
Total 25,000

Garfield Corporation Is Considering Building a New Plant in Canada