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'he Lombard Company produces and sells officespace dehumidifiers to companies that own or rent office space. (a) Lombard's materials and labor costs for producing the

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'he Lombard Company produces and sells officespace dehumidifiers to companies that own or rent office space. (a) Lombard's materials and labor costs for producing the dehumidifiers are $3,000 per unit and the fixed costs of its dehumidifier production plant are $1.65 million. |f Lombard sells a dehumidifier for $4 000 per unit what is its I percent contribution margin? - (b) If Lombard used revenue-based compensation to pay its sales force, what would be a salesperson's sales credit for selling 20 dehumidifiers at a price of $3,700? (c) If Lombard used the profitbased compensation method described in the course to pay its sales force and sets the dehumidifier's target price at $4,000 per unit, what would be a salesperson's sales credit for selling 20 dehumidifiers at a price of $3,700? - (d) Explain the benefit to Lombard's management of using the profit based ..-I- _---_|__-_- I- \"LI - I WIh-__I_I \\ -__-___--__-_-__

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