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Luxus, Inc. employs 50 sales personnel to market its line of luxury automobiles. The average car sells for $23,000, and a 6 percent commission is
Luxus, Inc. employs 50 sales personnel to market its line of luxury automobiles. The average car sells for $23,000, and a 6 percent commission is paid to the salesperson. Luxus, Inc. 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% of the sales made by that salesperson. The amount of total monthly car sales at which Luxus, Inc. would be indifferent as to which plan to select is: Multiple Choice $5,000,000 $1,875,000. $2,500,000. $3,750,000
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