Commision Query

System
System Posts: 100,534 🤖 Admin 🤖
edited June 18 in AAT student discussion
Hi,
I've been doing some work on the break even point and margin of safety. I have a question that asks:
"If a selling commision of £2 was introduced, calculate units to be sold to have a net profit of £10,000"

My query is, if I am to introduce a commission, presumably the commission is a variable cost, but do I raise the selling price to cover the commission? The question does not suggest either way.
Thanks for any help!

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Commision Query

    Hi Bella.

    I would assume the contribution would be £2 less.

    Scott.
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:Commision Query

    Thanks scott.

    I've sorted it now, just had my head in a fuddle yesterday.

    :roll:

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