Garfield Corporation is considering building a new plant in Canada. It predicts sales at the new plant to be 70,000 units at $3.00/unit. Below is a listing of estimated expenses:
A Canadian firm was contracted to sell the product and will receive a commission of 20% 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?
A) $42,000
B) $210,000
C) $242,000
D) $14,000
Correct Answer:
Verified
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