Use the Information Below to Answer the Following Question(s)

question 160

Multiple Choice

Use the information below to answer the following question(s) .
Veron Corporation is considering building a new plant in Europe. They predict sales at the new plant to be 100,000 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 13% 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) $40,000
• B) $52,000
• C) $80,000
• D) $13,000

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Definitions:

Notes to Financial Statements

Explanatory and supplementary information attached to the financial statements of a company, detailing the basis for figures and providing additional insights.

Nature and Function

A term often used to describe the properties and roles of different parts within a system or organization.

Basis of Accounting

The methodology under which revenues and expenses are recognized in the financial statements, examples include cash basis and accrual basis.

Statement of Activities

A financial report detailing the revenues, expenses, and changes in net assets of an organization, typically used by nonprofits.