'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
'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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