Currently the Sales Clerks Receive a Salary of $7,000 Per

question 101

Multiple Choice

Currently the sales clerks receive a salary of $7,000 per month in Store B. A proposal has been made to change from a fixed salary to a sales commission of 5%. Assume that this proposal is adopted, and that as a result sales increase by $20,000. The new segment margin for Store B should be:

• A)$29,000
• B)$32,000
• C)$39,000
• D)$45,000