=+Sure-Grip pays a selling commission equal to 5% ofthe selling price on North American orders, which is
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=+Sure-Grip pays a selling commission equal to 5% ofthe selling price on North American orders, which is included in the variable portion ofthe selling and administrative expenses.
However, this special order would not have a sales commission. Ifthe order was accepted, the tires would be shipped overseas for an additional shipping cost of $6.00 per tire. In addition, Continental has made the order conditional on receiving European safety certification. SureGrip estimates that this certification would cost $110,000.
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