Glade, Incorporated, is trying to decide whether to increase the commission$-$based pay of its salespeople. Currently, each of its five salespeople earns a $7\%$ commission on the units they sell for $$100$ each, plus a fixed salary of $$40,900$ per person. Glade hopes that by increasing commissions to $12\%$ and decreasing each salesperson's salary to $$21$;$000,$ sales will increase because salespeople will be more motivated. Currently, sales are $22,000$ units. Glade's other fixed costs, not including the salespeople's salaries, total $$593,000.$ Glade's other variable costs, not including commissions, total $$17$ per unit.

Required:

a$.$ What is the current profit?

b$.$ What is the current break$-$even point in units?

c$.$ What would the break$-$even point in units be if commissions are increased and salaries decreased?

d$.$ If sales increase by $12,000$ 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?

Complete this question by entering your answers in the tabs below.

Required C

Required D

Required E

What is the current profit?

Current Profit