Green Bay Motors, Inc., employs 20 sales personnel to market its line of luxury automobiles. The average
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Green Bay Motors, Inc., employs 20 sales personnel to market its line of luxury automobiles.
The average car sells for \($65,000\), and a 6 percent commission is paid to the salesperson. Green Bay Motors is considering a change to the commission arrangement where the company would pay each salesperson a salary of \($1,500\) per month plus a commission of 2 percent of the sales made by that salesperson. What is the amount of total monthly car sales at which Green Bay Motors would be indifferent as to which plan to select?
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Cost Management Accounting And Control
ISBN: 9780324233100
5th Edition
Authors: Don R. Hansen, Maryanne M. Mowen
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