Answer:
The total sales commissions at a sales volume of 35,000 units is $403,000.
Explanation:
The first step to solve this problem is find how much the commisions are for a single sale.
At a sales volume of 38,500 units, Choice Corporation's sales commissions (a cost that is variable with respect to sales volume) total $442,750.
So for a single sale, the commissions are 442,750/38,500 = 11,5.
So for each sale, there is $11.5 in commisions.
What should be the total sales commissions at a sales volume of 35,000 units?
35000*11.5 = $403,000
The total sales commissions at a sales volume of 35,000 units is $403,000.
