Garfield Corporation is considering building a new plant in Canada. It predicts sales at the new plant to be

80,000

units at

$7.00/unit.

Below is a listing of estimatedexpenses:

Category	Total Annual Expenses	% of Annual Expense that are Fixed
Materials	$30,000	30%
Labor	$70,000	10%
Overhead	$80,000	30%
Marketing/Admin	$30,000	40%

A Canadian 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 Canadian contractor expect to make in commissions?

A.

$24,000

B.

$378,000

C.

$168,000

D.

$ 560,000