Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please answer questions 5-8 1. The break-even point in total sales in dollars is: 2. The break-even point in total units is: 3. What would

please answer questions 5-8
image text in transcribed
image text in transcribed
1. The break-even point in total sales in dollars is: 2. The break-even point in total units is: 3. What would be the monthly operating income at a volume of 6000 units per month? 4. How many units must be sold to reach a target monthly income of $20,000 ? If the company decided a drop of $5 in price could increase sales to 8000 units, what would be their monthly income? 6. If the company decided an increase of $5000 in the advertising budget would increase sales to 8000 units, what would be their monthly income? 7. Which choice, \#5 or \#6 would be the better choice? Why? 8. The company currently has two sales people earning a salary of $2500 per month each. If instead, they paid each salesperson a salary of $1000 per month plus a commission of $0.50 for each unit each sold, how much would the income per month be at 6000,8000 , or 10,000 units sold? How many units would one salesperson have to sell to earn as much per month as under the original compensation plan

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Essentials Of Accounting

Authors: Robert N. Anthony, Leslie Pearlman Breitner

9th Edition

013149693X, 9780131496934

More Books

Students also viewed these Accounting questions

Question

=+15. Did you create a campaign that would create buzz?

Answered: 1 week ago

Question

=+9. Did you answer the consumer's question Why buy?

Answered: 1 week ago