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Garfield Corporation is considering building a new plant in Canada. It predicts sales at the new plant to be 70,000 units at $3.00/unit. Below is
Garfield Corporation is considering building a new plant in Canada. It predicts sales at the new plant to be 70,000 units at $3.00/unit. Below is a listing of estimated expenses: Category Materials Labor Overhead Marketing/Admin Total Annual Expenses $50,000 $80,000 $30,000 $40,000 % of Annual Expense that are Fixed 20% 20% 10% 40% A Canadian firm was contracted to sell the product and will receive a commission of 20% 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? O A. $242,000 O B. $210,000 OC. $14,000 OD. $42,000
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