At a sales volume of 35,000 units, Cly Corporation's sales commissions (a cost that is variable with respect to sales volume) total $525,000. To the nearest whole dollar, what should be the total sales commissions at a sales volume of 36,100 units? (Assume that this sales volume is within the relevant range.)
A)$525,000
B)$509,003
C)$533,250
D)$541,500

Question

Quizplus · Accepted Answer

The sales commission per unit is $525,000 / 35,000 = $15. At 36,100 units, the total sales commissions would be 36,100 * $15 = $541,500.

At a Sales Volume of 35,000 Units, Cly Corporation's Sales