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 cent, what should be the average sales commission per unit at a sales volume of 33,600 units? (Assume that this sales volume is within the relevant range.)
A)$14.54
B)$15.00
C)$15.63
D)$15.32

Question

Quizplus · Accepted Answer

The sales commission per unit is calculated by dividing the total sales commissions by the number of units. At 35,000 units, the commission per unit is $525,000 / 35,000 = $15.00. Since the commission is variable and within the relevant range, it remains $15.00 per unit at 33,600 units.

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