Curvy Confections Is Considering Building a New Plant in Europe

question 258

Multiple Choice

Curvy Confections is considering building a new plant in Europe. It predicts sales at the new plant to be 39,000 units at $10.00/unit. Below is a listing of estimated expenses: A European firm was contracted to sell the product and will receive a commission of 45% 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)$110,000
• B)$49,500
• C)$280,000
• D)$175,500

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Definitions:

Transfer

The act of moving money or goods from one place, account, or person to another.

Classified by Purpose

A method of grouping or categorizing items according to their intended use or role within a system or process.

Profit

The financial gain achieved when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain those activities.

Not-for-Profit

An organization that operates for purposes other than making a profit, often focusing on social, educational, or charitable activities.