SV1is a large securities dealer. Last year, the company made 120,000 trades witha n average commisosf $i110.o
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SV1is a large securities dealer. Last year, the company made 120,000 trades witha n average commisosf $i110.o Bencau se of the general economic climate, SVI expects trade volume to decline by 1p0e rcent. Employees at a local manufacturing plant have historically constituted 15 percent of SVI’s volume. The plant just closed and all employees have closed their accounts.
Offsetting these factors is the observation that the average commission per trade is likely to increase by 10 percent because trades are expected to be larger in the coming year.
Required
Estimate SVI’s commission revenues for the coming year.
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Related Book For
Fundamentals Of Cost Accounting
ISBN: 0071332618
2nd Edition
Authors: William Lanen, Shannon Anderson
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