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At a sales volume of 38,500 units, Choice Corporation's sales commissions (a cost that is variable with respect to sales volume) total $646,800.

User Jahira
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1 Answer

4 votes

Answer:

$688,800

Step-by-step explanation:

Calculation for the what should be the total sales commissions at a sales volume of 41,000 units

First step

Using this formula for Sales commission per unit

Sales commission per unit = Total sales commissions ÷ Unit sales

Let plug in the formula

Sales commission per unit= $646,800 ÷ 38,500 = $16.80

Second step is to calculate for the Total Sales commission by using this formula

Total sales commission = Sales commission per unit × Unit sales

Total sales commission= $61.80 × 41,000

Total sales commission =$688,800

Therefore the Total sales commission will e $688,800

User Edward Garson
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