Question

Dobbins resources pays sales commissions of $2 per unit and shipping costs of $0.75 per unit. if dobbins expects to sell 12,000 units in the third quarter, what will their total variable expenses be

Answer 1

The Variable Expense per unit = 2 + 0.75 = $2.75 The variable expenses for 12000 units = 12000 x 2.75 = $33000 Hence the total variable expenses will be $33000