Norman Company Pays a Sales Commission of 4% on Each

question 71

Multiple Choice

Norman Company pays a sales commission of 4% on each unit sold. If a graph is prepared, with the vertical axis representing per-unit cost and the horizontal axis representing units sold, how would a line that depicts sales commissions be drawn?

• A) As a straight diagonal line, sloping upward to the right.
• B) As a straight diagonal line, sloping downward to the right.
• C) As a horizontal line.
• D) As a vertical line.
• E) As a curvilinear line.

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Definitions:

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