Duncan Enterprises Is Considering Building a New Plant in Canada

question 24

Multiple Choice

Duncan Enterprises is considering building a new plant in Canada.They predict sales at the new plant to be 50,000 units at $10.00/unit.Below is a listing of estimated expenses: $$\begin{array} { | l | c | c | } \hline \text { Category } & \begin{array} { c } \text { Total Annual } \\\text { Expenses }\end{array} & \begin{array} { c } \text { \% of Annual Expense } \\\text { that are Fixed }\end{array} \\\hline \text { Materials } & \$ 50,000 & 10 \% \\\hline \text { Labor } & \$ 90,000 & 20 \% \\\hline \text { Overhead } & \$ 40,000 & 30 \% \\\hline \text { Marketing/Admin } & \$ 20,000 & 50 \% \\\hline\end{array}$$ A Canadian firm was contracted to sell the product and will receive a commission of 20% of the sales price.No U.S.home office expenses will be allocated to the new facility.
How much does the Canadian contractor expect to make in commissions?

• A)$ 50,000
• B)$ 10,000
• C)$100,000
• D)$400,000

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Definitions:

Nephron

The fundamental unit of structure and function in the kidney, tasked with purifying blood and generating urine.

Metabolism

The set of life-sustaining chemical reactions in organisms that enable the conversion of food to energy, the construction of proteins and nucleic acids, and the elimination of nitrogenous wastes.

Lasix

A diuretic medication used to treat fluid build-up and swelling caused by congestive heart failure, liver disease, or kidney disease.

Diuretic

A substance that increases urine production by the kidneys, helping the body eliminate excess fluid.