Glade, Inc. is trying to decide whether to increase the commission-based pay of its salespeople. Currently, each of its five salespeople earns a 12% commission on the units they sell for $100 each, plus a fixed salary of $41,100 per person. Glade hopes that by increasing commissions to 17% and decreasing each salespersons salary to $21,700, sales will increase because salespeople will be more motivated. Currently, sales are 17,000 units. Glades other fixed costs, NOT including the salespeoples salaries, total $595,000. Glades other variable costs, NOT including commissions, total $16 per unit. a. What is the current profit?

Current Profit

?

b. What is the current break-even point in units? (Round your answer to the nearest whole number.)

Break-Even Point

? unit

c. What would the break-even point in units be if commissions are increased and salaries decreased? (Round your answer to the nearest whole number.)

Break-Even Point

? unit

d. If sales increase by 9,000 units, what will profit be under the new plan?

Profit under the new plan

?

e. At what sales level would Glade be indifferent between the lower-commission plan and the higher-commission plan?

Point of Indifference

? unit

Juniper Enterprises sells handmade clocks. Its variable cost per clock is $6.80, and each clock sells for $17.00. The companys fixed costs total $7,446. How many units must Juniper sell to earn a profit of at least $6,834?

Sales

? units