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Glade, Inc. is trying to decide whether to increase the commission-based pay of its salespeople. Currenty, each of its five salespeople earns a 8% commission
Glade, Inc. is trying to decide whether to increase the commission-based pay of its salespeople. Currenty, each of its five salespeople earns a 8% commission on the units they sell for $100 each, plus a fixed salary 40100 per person. Glade hopes that by increasing commissions to 13% and decreasing each salesperson's salary to $20,300, sales will increase because salespeople will be more motivated. Currently, sales are 20,000 units. Glade's other fixed costs, NOT including the salespeople's salaries, total $599,000. Glade's other variable costs, NOT including commissions, total $14 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.) ven units 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.) Seak-Even Point. 1 units d. If sales increase by 5,000 units, what will profit be under the new plan? Profit Under the New Plan
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