Min-Ju Yang Is Employed as a Salesperson and Earns Both

question 4

Multiple Choice

Min-ju Yang is employed as a salesperson and earns both a salary and commission income.In 2020, Min-ju's commissions totaled $5,500.Min-ju is required to pay for numerous employment expenses each year which are identified on the annual T2200.Min-ju paid $6,200 for advertising and promotion during the year.Min-ju uses a personal vehicle for work purposes, and in 2020, the total capital cost allowance for the car was $12,000, and $320 of interest was paid per month on a loan for the car.Min-ju drove the car a total of 20,000 kilometres in 2020.8,000 of these were for work purposes.How much is Min-ju's total salesperson deduction for 2020?

• A)$0
• B)$11,760
• C)$12,460
• D)$21,850

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Definitions:

Variable Costs

Variable expenses directly linked to the operational scale of a business.

Variable Costing

Variable costing is an accounting approach that includes only variable production costs (materials, labor, and overhead) in product costs, omitting fixed costs.

Net Income

The total profit of a company after all expenses, taxes and costs have been subtracted from total revenue.

Variable Manufacturing Costs

Costs that vary directly with the level of production output, such as raw materials and direct labor.