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Can you share the formula to use in excel plz? the Mayer Electrical Distribution Company, and your goal is to madmize your before- tax profits.
Can you share the formula to use in excel plz?
the Mayer Electrical Distribution Company, and your goal is to madmize your before- tax profits. You currently pay salespeople a base salary and a flat 4 percent commission on sale You sell three products. Following this question is an Excel spreadsheet printout titled "Current Situation" that gives the starting information. Unit Costs do not include sales commission costs. You have 10 salespeople. You pay them $30,000 salary and $10,000 benefits each. Thls gives you $400,000 foxed sales costs. You have annual fixed costs of $1,400,000 (Including fixed sales costs). Unfortunately, your firm keeps losing the best salespeople. You are considering several options to retain your best salespeople (1) Increase the commission to 6 percent or (2) alter the commission structure to reflect the profitablity of each product. You think the total compensation plan is increased for the sales force your sales will increase 10 percent year due to retaining the best people and increased motivation. Without this increase in compensation, you think that sales will increase 4 percent. You might want to look at the sales potential financial impact of (a) doing nothing, (b) incceasing the commission from a flat 4 percent to a flat 6 percent, or (e) increasing the commissions in a manner that reflects the profitability of each product. 1. What was your total profit before taxes this year? 2. What is your expected total profit before taxes next year if the sales force payment remains the same (and sales increase 4 percentj? plan 3. What is your expected total profit before taxes next year if you increase commissions to 6 percent? A quick way to complete this exercise is to copy the first spreadsheet and then adjust the copied tables for the new information given above. Note that you will have to change the the cells titled "Commissions per Unit" and "Sales Commissions" to reflect the new adjustment on the commissio just mu Also, remember to change the units sold formula. The program automatically recomputes all of the other calculations formulos in n increase. For example, to change the commission increase to 6 percent, you tiply the unit sales by the new increase and change the sales commission percentage. Paste, Blu. B- O-A-1 Clipboard G19 Merge & Center. $. %, Conditional For atas Formatting- Table Font Alignment Number Styles Current Situation ($30000 & 4% commission Product 3 S355.00 $195.25 $14 20 $145.55 Unit Analysis Product 1 $117.00 555.00 $4.68 S57.32 Product2 $29.00 $17.40 $1.16 $10.44 Totals 4 Price Per Unit 5 Cost Per Unit 6 Commissions per Unit 7 Contribution per Unit $501.00 $267.65 $20.04 $213.31 Units Sold Adgregate Analys 15674 12334 $1,833,858.00 $357,686.00$3,238,665.00 9123 37131 S5,430.20900 11 Dollar Sales 12 Dollar Costs 13 Sales Commissions 14 Net Contribution $862,070 00 S73,354 32 $898 433.68 $214,611.60 $1,781,265.75 $2,857,947.35 $217 208.36 66 96 $1.327.852 65$2.355,053 29 S14.307.44 $129,546.60 16 Total Net Contribution 17 Total Pretax Profit $2,355,053 29 $955,053 29 19Step by Step Solution
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