Question
Joe needed a job to at least cover his university tuition next year. Acme Vacuum Company would hire him to sell its vacuum cleaners on
Joe needed a job to at least cover his university tuition next year. Acme Vacuum Company would hire him to sell its vacuum cleaners on a door-to-door basis. The company estimated that Joe's variable cost per sale (which included paying Acme for the vacuums) would amount to approximately 60 per cent of the selling price of the cleaners. Joe's fixed costs for the summer (including his apartment rent and spending money) would amount to $2,500. Joe figured that he needed $4,500 to cover tuition next year. Acme estimated that a keen salesperson could sell $15,000 at retail of vacuum cleaners in a four-month period. Joe knew that he could return instead to his old summer job in a factory. Although his salary would be assured at this factory job, Joe understood he would be able to save only $3,500 for his schooling. Which job should Joe take? What factors did you consider when making your decision?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To make a decision we need to compare the potential earnings from both jobs Calculation of the poten...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started