Norman Company pays a sales commission of 5% on each unit sold. If a graph is prepared, with the vertical axis representing the per-unit cost and the horizontal axis representing the number of units sold, how would a line that depicts sales commissions per unit be drawn?
A)As a straight diagonal line, sloping upward to the right.
B)As a straight diagonal line, sloping downward to the right.
C)As a horizontal line.
D)As a vertical line.
E)As a curvilinear line.

Question

Quizplus · Accepted Answer

The sales commission per unit is a fixed percentage (5%) of the sales price, so it remains constant regardless of the number of units sold. Therefore, it is represented as a horizontal line on the graph.

Norman Company Pays a Sales Commission of 5% on Each