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4. The firm is considering reducing monthly fixed salaries (currently $58,000 ) and using a combination salary and commission employee compensation plan. The reduction in
4. The firm is considering reducing monthly fixed salaries (currently $58,000 ) and using a combination salary and commission employee compensation plan. The reduction in fixed salaries would equal $12,000 monthly and be replaced with a 3% of gross sales commission payment. The 3% would be shared by all fixed salary employees. a. Calculate the new breakeven point in monthly sales dollars. b. Calculate the new level of monthly sales dollars needed to eam an operating profit of $18,000 monthly
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