Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Luxus, Inc. employs 46 sales personnel to market its line of luxury automobiles. The average car sells for $29,000, and a 6 percent commission is
Luxus, Inc. employs 46 sales personnel to market its line of luxury automobiles. The average car sells for $29,000, and a 6 percent commission is paid to the salesperson. Luxus Motors is considering a change to the commission arrangement where the company would pay each salesperson a salary of $3,000 per month plus a commission of 2 percent of the sales made by that salesperson. The amount of total monthly car sales at which Luxus Motors would be indifferent as to which plan to select is:
$3,450,000.
$4,600,000.
$2,300,000.
$1,875,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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