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Glade, Inc. Is trying to decide whether to Increase the commission-based pay of Its salespeople. Currently, each of its five salespeople eams a 13% commission
Glade, Inc. Is trying to decide whether to Increase the commission-based pay of Its salespeople. Currently, each of its five salespeople eams a 13% commission on the units they sell for $100 each, plus a fixed salary of $40,500 per person. Glade hopes that by increasing commissions to 18% and decreasing each salesperson's salary to $21,600, sales will increase because salespeople will be more motlvated. Currently, sales are 16,000 units. Glade's other fixed costs, NOT including the salespeople's salarles, total $597,000. Glade's other varlable costs, NOT including commissions, total $11 per unit. a. What is the current profit? b. What is the current break-even point in units? (Round your answer to the nearest whole number.) c. What would the break-even point in units be if commissions are increased and salarles decreased? (Round your answer to the nearest whole number.) d. If sales increase by 6,000 units, what will profit be under the new plan? e. At what sales level would Glade be indifferent between the lower-commission plan and the higher-commission plan
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