Question
HELP! The has no Wes force O' RS but coui it matke. its The tSS. B;vbora Ctvvy. nnt OtegyeC tho ..aas.coo azd enr.arty on stompe
HELP!
The has no Wes force O' RS but coui it matke. its The tSS. B;vbora Ctvvy. nnt OtegyeC tho ..aas.coo azd enr.arty on stompe to Kevi Veecl. Pittman's Stee convnOrTtO3. etie&d the agctas but Our to 70'S. the izt straw. agents and more. and t'afi Cen ' ate r there" say plain retorted Karl. And i also say it's time we dumped those guys and got our own soles force. Can you got your to up some cost ngures us to jook at? already worved them up: comparqes we know about pay commission to their own Of wo to costs. too We figure our would In-crease by S3.375.ooo out thot would more by the *4.500000 $27.500.000) that would avoid on agents commessi-on-v- of the cost Sup-ot: op'ied tho Whot poyqna thc ogent undo' Oid 15X. cortvmsion rate." it's even better than thot_ We con oct.u.aity SOO a that'S What paytng our -auditors to the reports. So would be jess. - or numbers and titer" to the said With Of move the 1 sales assuming: ' ate to 2. eat 20 t". to n exome ot to nat The rems" t b. The Required 1 Required 2 Required 3 Required 4 Assume that Pittman Company decides to continue selling through agents and pays the 20% commission rate. Determine the dollar sales that would be required to generate the same net income as contained in the budgeted income statement for next year. (Round CM ratio to 3 decimal places and final answer to the nearest dollar amount.) of sales (tiddiar.) $ 23275.714 0 Required 1 Required 2 Required 3 Required 4 Determine the dollar sales at which net income would be equal regardless of whether Pittman Company sells through agents (at a 20% commission rate) or employs its own sales force. (Do not round intermediate calculations.) dume of sales (in dollars) Required i Required 2 Required 3 Required 4 Compute the degree of operating leverage that the company would expect to have at the end of next year assuming: (Use income before income taxes in your operating leverage computation.) (Round your answers to 2 decimal places.) a. The agents' commission rate remains unchanged at 15%. b. agents' commission rate is increased to 20%. c. The company employs its own sales force. Degree of Operating Leverage 3.16 e 4.58 4.350
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