Sales Commissions for the Grant Company Are Budgeted Based on a Percent

question 23

Multiple Choice

Sales commissions for the Grant Company are budgeted based on a percent of sales.The sales department budgeted sales of $150,000 for total commissions of $4,500.If actual sales totaled $170,000 the flexible budget will show total commissions of:

• A)$24,500
• B)$5,100
• C)$4,500
• D)$15,500

---

Definitions:

Sales

The exchange of goods or services for money, representing the primary source of revenue for most businesses.

Commission Only

A payment model where compensation is based solely on the amount of sales or transactions generated, with no base salary.

Additional Commission

Extra earnings given to employees or salespersons on top of their standard commission, often based on reaching a specific target or sales goal.

Monthly Salary

Regular payment received by an employee from their employer for work performed, calculated on a monthly basis.