Question
Glade, Inc. is evaluating a commission-based pay plan for its salespeople. Currently, Glade has five salespeople and they sell units that sell for $100 each.
Glade, Inc. is evaluating a commission-based pay plan for its salespeople. Currently, Glade has five salespeople and they sell units that sell for $100 each. Glade is considering a plan in which each salesperson would earn an annual salary of $20,900, plus commissions of 11% of the sales price for each unit sold by that salesperson. Glades other fixed costs, NOT including the salespeoples salaries, total $584,000. Glades other variable costs, NOT including commissions, total $15 per unit. Required: What would the break-even point in units be under this pay plan? (Round your answer to the nearest whole number.)
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