Question
JJ Motors Inc. employs 45 sales personnel to market their line of luxury automobiles. The average car sells for $23,000, and a 6 percent commission
JJ Motors Inc. employs 45 sales personnel to market their line of luxury automobiles. The average car sells for
$23,000, and a 6 percent commission is paid to the salesperson. JJ Motors is considering a change to the commission
arrangement where the company would pay each salesperson a salary of $2,000 per month plus a commission of
2 percent of the sales made by that salesperson. The amount of total monthly car sales at which JJ Motors would
be indifferent as to which plan to select is:
$2,250,000.
$3,000,000.
$1,500,000.
$1,250,000.
$4,500,000.
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