To the Nearest Whole Dollar, What Should Be the Total

question 27

Multiple Choice

To the nearest whole dollar, what should be the total sales commissions at a sales volume of 36,100 units? (Assume that this sales volume is within the relevant range.)

• A)$525,000
• B)$509,003
• C)$533,250
• D)$541,500

---

Definitions:

Times Interest Earned

A financial ratio that measures a company's ability to meet its debt obligations by comparing its earnings before interest and taxes (EBIT) to its interest expenses.

Equity Multiplier

A financial ratio that measures a company's total assets financed by its shareholders' equity, used to evaluate financial leverage.

Net Profit Margin

A profitability ratio calculated as net income divided by revenue, indicating how much profit a company makes with its total sales.

Gross Margin

The difference between revenue and cost of goods sold divided by revenue, expressed as a percentage.