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Page 7 of 12 on, Ine, proche sulley of his lity wood and wel. The company makes a standar et and sell them to retail

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Page 7 of 12 on, Ine, proche sulley of his lity wood and wel. The company makes a standar et and sell them to retail dea t h the country. The Standard set sets for RE SIOO Th e d with cach tre given Standard Deluxe Variable production cost 3000 4000 Sales commission 16.00 - 20.00 Number of units sold in the last month 5.000 3,500 The company's fixed expenses cach month are Advertising 110,000 Depreciation 23,200 Administrative 65.500 11 Assuming the sales mix remains the same, Harrington's break-even revenue is closest to A S 418,316 R S 413.958 C S 361.273 D S 496,750 E Nome of the above 12 Harrington recently hired a marketing manager, who is keen on restructuring their sales force. Her plan is to change the compensation structure so that sales personnel earn a fixed salary and a commission. If they reduce the commission to 8% for Standard and 10% for Deluxe, then how much (fixed) salary can the company pay to the sales personnel to eam the same income they currently earn? Assume the sales units remain at the original level. A $ 48,000 B. $ 75,000 C S 83,000 D. $ 83,300 E None of the above

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