Garfield Corporation is considering building a new plant in Canada. It predicts sales at the...
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Garfield Corporation is considering building a new plant in Canada. It predicts sales at the new plant to be 80,000 units at $6.00/unit. Below is a listing of estimated expenses: Total Annual % of Annual Expense Category Expenses that are Fixed Materials $80,000 30% Labor $60,000 20% Overhead $30,000 10% Marketing/Admin $60,000 60% 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 $16,000 B. $326,000 c. $480,000 D. $96,000 enal or
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