24. Deussin Company sells its product for $160 per unit. Variable costs are $90 per unit, and...
Question:
24. Deussin Company sells its product for $160 per unit. Variable costs are $90 per unit, and fixed costs are $77,000 per month. Deussin currently pays each of its 5 salespeople a fixed salary of $4,000 per month. Deussin is considering lowering that amount to $2,000 per month, and adding a 5% sales commission for each salesperson.
At what level of unit sales would Deussin Company be indifferent between paying the current fixed salary and paying a lower fixed salary plus commissions?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Mastering Managerial Accounting Key Concepts Through Problem Sets
ISBN: 9781626611184
1st Edition
Authors: Christine Denison
Question Posted: