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Assume the following scenario for your answers to i) and j). Treat both scenarios independent of each other: Management wants to examine the possibility
Assume the following scenario for your answers to i) and j). Treat both scenarios independent of each other: Management wants to examine the possibility of employing the company's own sales force. The company would need a sales manager at an annual salary of $60,000 and two sales personnel at an annual salary of $20,000 each, plus a commission of 5% of sales. All other fixed costs, as well as the variable cost percentages would remain the same as in the above income statement. i) Calculate the sales dollars required for the Quarter 4 2023, to have the same operating income as projected in the pro forma income statement above if the company employs its own sales force. 6 marks j) Calculate the required unit selling price to have the same operating income as projected in the pro forma income statement above if the company employs its own sales force. Assume that a change in the selling price does not affect demand for buckets. 2 marks
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