Use the information below to answer the following question(s) .
Duncan Enterprises is considering building a new plant in Canada. They predict sales at the new plant to be 50,000 units at $10.00/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) $50,000
B) $10,000
C) $100,000
D) $400,000
Correct Answer:
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