Jackie’s broker charges her a commission of $8 per ten shares of stock she buys or sells. if jackie buys 77 shares of alesia insurance at $10.34 per share and 120 shares of ergar appliances at $8.11 per share, how much will jackie spend in commission?
a. $796.18
b. $157.60
c. $973.20
d. $1,926.98

The correct option is b. $157.60

Explanation:

For computing the total commission, first, we have to compute the per commission percentage to one share which equals to

= Commission ÷ number of shares

= $8 ÷ 10 shares

= 0.8

Now, Jackie buys 77 shares, so the commission would be

= Number of shares × per commission

= 77 × 0.8

= $61.6

And, the Jackie sales 120 shares, so the commission would be

= Number of shares × per commission

= 120 × 0.8

= $96

So, the total commission would be equal to

= 61.6 + 96

= $157.60

Hence, Jackie will spend $157.60 in commission

Thus, The correct option is b. $157.60

$3.50

Explanation:

Absorption Costing is a Costing Method that takes into account all the Manufacturing Cost of a product (that is Variable Manufacturing Costs and Fixed Manufacturing Costs) to determine Product Cost.

Any other costs (Non - Manufacturing)  are regarded as Period costs to be expensed in the Income Statement. Examples of Period Costs are Administrative Costs, Sales Commissions and Adverting Costs

Calculation of Product Cost per cupcake under absorption costing

Product Cost = VC + FC

                      =  $3 + $1,400/ 2,800

                      = $3.50