Premier Corporation sells two models of home ice cream makers, Mister Ice Cream and Cold King. Current sales total 60,000 units, consisting of 21,000 Mister Ice Cream units and 39,000 Cold King units. Selling price and variable cost information follow:

	Mr. Ice Cream	Cold King
Selling Price	37.00	43.00
Variable Cost	20.50	32.50

Salespeople currently receive flat salaries that total 200,000. Management is contemplating a change to a compensation plan that is based on commissions in an effort to boost the companys presence in the marketplace. Two plans are under consideration:

Plan A: 10% commission computed on gross peso sales. Mister Ice Cream sales are anticipated to be 19,500 units. Cold King sales are expected to total 45,500 units.

Plan B: 30% commission computed on the basis of production contribution margins. Mister Ice Cream sales are expected to total 39,000 units. Cold King sales are anticipated to be 26,000 units

How much will be the new total commission under Plan B?

Group of answer choices

200,000

641,550

556,000

274,950

----

The following selected information pertains to Ajax Processing Co.: direct materials, 62,500; indirect materials, 12,500; factory payroll, 75,000 of direct labor and 11,250 of indirect labor; and other factory overhead incurred. 37,500.

The total CONVERSION COST was ____________ .

Group of answer choices

250,000

137,500

273,750

136,250