Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Orton Company distributes one product that sells for $ 1 1 . 5 0 per unit and incurs variable expenses of $ 8 . 2

Orton Company distributes one product that sells for $11.50 per unit and incurs variable expenses of $8.25 per unit. Its monthly fixed expense is $80,000. The company currently pays its sales representatives a sales commission of $1.75 per unit sold; however, it is considering replacing these sales commissions with sales salaries of $70,000 per month. Orton would like your help in creating a cost-volume-profit (CVP) graph and a profit graph for both compensation scenarios up to a sales volume of 50,000 units.
Download the Excel file, which you will use to create the CVP graphs and profit graphs within Tableau.
Upload the Excel file into Tableau by doing the following:
Open the Tableau Desktop application.
On the left-hand side, under the "Connect" header and the "To a file" sub-header, click on "Microsoft Excel."
Choose the Excel file and click "Open."
Since the only worksheet in the Excel File is "Orton Company" it will default as a selection with no further import steps needed
Required:
Note: Note that for all questions below you may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.
3a. Which of the following statements true?
?
The break-even point in unit sales differs between the two compensation schemes, but the break-even point in dollar sales is the same in
both compensation schemes
The break-even point in unit sales and dollar sales is the same in both compensation schemes.
? The break-even point in unit sales and dollar sales is higher in the salary-based compensation scheme.
? The break-even point in unit sales and dollar sales is higher in the commission-based compensation scheme.
sb. Which of the following statements true?
? When unit sales are zero, the loss in the salary-based compensation scheme is greater than the loss in the commission-based scheme.
? When unit sales are zero, the loss in the salary-based compensation scheme is less than the loss in the commission-based scheme.
? When unit sales are zero, the loss in the salary-based compensation scheme equals the loss in the commission-based scheme.
? When unit sales are zero the company's profit is zero under both compensation schemes.
3c. Which of the following statements true?
? When units sales equal 50,000 units the company's profit under both compensation schemes is equal to its sales minus total fixed expenses.
? When units sales equal 50,000 units the profit in the salary-based compensation scheme equals the profit in the commission-based scheme.
? When units sales equal 50,000 units the profit in the salary-based compensation scheme is less than the profit in the commission-based scheme.
?
When units sales equal 50,000 units the profit in the salary-based comper.
scheme.
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions