Question

At a sales volume of 34,500 units, Choice Corporation's sales commissions (a cost that is variable with respect to sales volume) total $455,400. To the nearest whole dollar, what should be the total sales commissions at a sales volume of 33,400 units? (Assume that this sales volume is within the relevant range.) (Round intermediate calculations to 2 decimal places.)

Answer 1

To calculate the total sales commissions at a sales volume of 33,400 units, divide the total sales commissions by the sales volume to get the cost per unit, then multiply the cost per unit by the sales volume to get the total sales commissions.

Step-by-step explanation:

To calculate the total sales commissions at a sales volume of 33,400 units, we can use the concept of the cost-volume-profit analysis.

First, we can calculate the cost per unit of sales commissions by dividing the total sales commissions by the sales volume: $455,400 / 34,500 units = $13.18 per unit.

Then, multiply the cost per unit by the sales volume of 33,400 units: $13.18 * 33,400 units = $439,252.

So, the total sales commissions at a sales volume of 33,400 units should be approximately $439,252.

Answer 2

$440,880

Step-by-step explanation:

Sales commission per unit = $455,400/34,500 units

Sales commission per unit = $13.2

Total sales commission at sales volume of 33,400 units:

= $13.2 * 33,400 units

= $440,880