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Below is a variable costing income statement for the Steering Glass Company, a maker of bottles for the beverage industry. For the coming year, the
Below is a variable costing income statement for the Steering Glass Company, a maker of bottles for the beverage industry. For the coming year, the company is considering hiring 3 additional sales representatives at $72,800 each for base salary. The company anticipates that each sales representative will generate $902,400 of incremental sales Steering Glass Company Income Statement For the Year Ending December 31, 2017 Sales $19,070,000 Less: Variable cost of goods sold Variable selling expense $7,246,600 4,004,700 11,251,300 Contribution margin 7,818,700 Less Fixed production expense Fixed selling expense Fixed administrative expense 2,505,400 1,748,300 3,238,400 7,492,100 Net income $326,600 Calculate the impact on profit of the proposed hiring decision Profit Should the company hire the 3 additional sales representatives? ' Company hire the 3 additional sales representatives
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