At a sales volume of 36,000 units, Quale Corporation's sales commissions (a cost that is variable with respect to sales volume) total $187,200.
-To the nearest whole dollar, what should be the total sales commissions at a sales volume of 38,300 units? (Assume that this sales volume is within the relevant range.)

Question

Quizplus · Accepted Answer

To find the answer, we need to calculate the commission rate per unit, which is the variable cost per unit. This can be found by dividing the total sales commission by the sales volume:

Commission rate per unit = Total sales commission / Sales volume 
Commission rate per unit = $187,200 / 36,000 = $5.20

Now, we can use this commission rate to calculate the total sales commission at a sales volume of 38,300 units:

Total sales commission = Commission rate per unit * Sales volume 
Total sales commission = $5.20 * 38,300 = $199,160

Therefore, the answer is choice A: $199,160.

At a Sales Volume of 36,000 Units, Quale Corporation's Sales