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Aviator Station, Inc. operates a chain of high - end athletic apparel stores. The stores sell ten different styles of sweatpants with identical unit costs
Aviator Station, Inc. operates a chain of highend athletic apparel stores. The stores sell ten different styles of sweatpants with identical unit costs and selling prices. A unit is defined as one pair of sweatpants. Each store has a manager who is paid a fixed salary. Individual salespeople receive a fixed salary and a sales commission. Aviator is trying to determine the desirability of opening another store, which is expected to have the following revenue and cost relationships: Refer to the original data. Calculate the number of units sold where the operating profit under a a fixed salary plan discussed in above and b a lower fixed salary and commission plan for salespeople only would be equal. Above that number of units sold, one plan would be more profitable than the other; below that number of units sold, the reverse would occur.
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