Fancy Pasty Puffs is considering building a new plant in Europe. It predicts sales at the new plant to be 45,000 units at $10.00/unit. Below is a listing of estimated expenses:

Category

Total Annual Expenses

% of Annual Expenses that

are Fixed

Materials

$25,000

20%

Labor

$30,000

10%

Overhead

$50,000

50%

Marketing/Admin

$15,000

60%

A European firm was contracted to sell the product and will receive a commission of 30% of the sales price. No U.S. home office expenses will be allocated to the new facility. How much does the European contractor expect to make in commissions?