Stanley's Candies Is Considering Building a New Plant in Europe

question 249

Multiple Choice

Stanley's Candies is considering building a new plant in Europe. It predicts sales at the new plant to be 40,000 units at $4.00/unit. Below is a listing of estimated expenses: A European firm was contracted to sell the product and will receive a commission of 10% of the sales price. No U.S. home office expenses will be allocated to the new facility.
How much does the European contractor expect to make in commissions?

• A)$4,000
• B)$32,000
• C)$80,000
• D)$16,000

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Definitions:

Terabyte

A unit of digital data storage equaling approximately one trillion bytes or 1,024 gigabytes, used to quantify the storage capacity of large systems.

Gigabyte

A unit of digital information storage or memory capacity equal to approximately one billion bytes (or 1,000 megabytes).

Megabyte

A unit of digital information storage or transmission comprised of approximately one million bytes (1,000 kilobytes or 1,024 kilobytes in binary).

Petabyte

A unit of information or computer storage equal to one quadrillion bytes or 1,024 terabytes, commonly used to measure data capacity on a large scale.