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James is the sales manager for a large yacht manufacturer. He has prepared his budget based on sales of $1,000,000 and sales commissions of $200,000.
James is the sales manager for a large yacht manufacturer. He has prepared his budget based on sales of $1,000,000 and sales commissions of $200,000. At the six month point of his one year budget, sales is already $1,000,000 and commissions have met budget as well. If James is working with a static budget, what are his options? O James needs to stop paying commissions immediately. James is going to go over budget on both sales and commissions, and will need to explain this O to management. He cannot stop paying commissions simply because he has met his static budget amount, and to stop selling yachts would not make sense either. O James needs to quit selling, since he has met his budget for the year already
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