The Selling Price of a Unit Is $20 and the Variable

question 77

Multiple Choice

The selling price of a unit is $20 and the variable product cost per unit is $14. In addition, a sales commission of 5% is paid on each sale. If the variable cost per unit $\textbf{ excluding }$ sales commission increases by 1%, what will be the new total cost per unit?

• A) $14.84
• B) $14.85
• C) $14.90
• D) $15.14

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Definitions:

Board of Directors

A group of individuals elected to represent shareholders and govern the activities and policies of a corporation.

Corporate Promoter

An individual or entity that undertakes the creation and organization of a corporation, including the arrangement of its initial affairs.

Lease

A contract granting use or occupancy of property during a specified period in exchange for a specified rent or other terms.

Corporate Objective

The goals or plans that a corporation aims to achieve, which guide its operational and strategic decisions.