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Bluff Corporation is considering building a new plant in Canada. It predicts sales at the new plant to be 70,000 units at $6/unit. Below
Bluff Corporation is considering building a new plant in Canada. It predicts sales at the new plant to be 70,000 units at $6/unit. Below is a listing of estimated expenses: Category Total Annual Expenses % of Annual Expense Materials Labor Overhead Marketing/Admin $40,000 $90,000 $30,000 $50,000 that are Fixed 20% 30% 10% 60% A Canadian firm was contracted to sell the product and will receive a commission of 10% of the sales price. No U.S. home office expenses will be allocated to the new facility. How much does the Canadian contractor expect to make in commissions? OA. $42,000 OB. $252,000 OC. $420,000 OD. $7,000
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