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A company has the following cost and revenue structure Fixed costs- $300 000 . Variable costs per unit- $15 . Selling price-$18 The manager of
A company has the following cost and revenue structure Fixed costs- $300 000 . Variable costs per unit- $15 . Selling price-$18 The manager of the company has an annual fixed salary of R80 000 (included in fixed costs above) and a yearly vanable bonus which is equal to 2% of the operating profit The maximum bonus is 50% of the annual salary Required: What would be the minimum desired level of sales revenue from the manager's point of view if he wishes to maximise his income
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