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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 earns a 9%
Glade, Inc. is trying to decide whether to increase the commission-based pay of its salespeople. Currently, each of its five salespeople earns a 9% commission on the units they sell for $100 each, plus a fixed salary of $40,600 per person. Glade hopes that by increasing commissions to 14% and decreasing each salesperson's salary to $21,100, sales will increase because salespeople will be more motivated. Currently, sales are 21,000 units. Glade's other fixed costs, NOT including the salespeople's salaries, total $597,000. Glade's other variable costs, NOT including commissions, total $13 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 units
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