Question
A&M store has a 65% contribution margin (CM), of which 20% goes to the store salesman's sell commission. The recorded sales for the month were
A&M store has a 65% contribution margin (CM), of which 20% goes to the store salesman's sell commission. The recorded sales for the month were $200,000 The store has the following costs associated with sales includes the following: A. Rent- $30,000 per month B. Back-office Salaries- $8,000 per month
what is the total profit for the month?
In order to breakeven, how much total sales do we need?
| What would impact profit more- rent doubling or sales commission doubling? (rent from $20k to $30k or sales commission from 20% to 30%) |
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Equity Asset Valuation
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
2nd Edition
470571439, 470571438, 9781118364123 , 978-0470571439
