Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please help me solve this problem and include an explanation. i would appreciate it! Commission Plans You just got a job as a salesman, You

please help me solve this problem and include an explanation. i would appreciate it!
image text in transcribed
Commission Plans You just got a job as a salesman, You have a choice of different salary plans Plan A Eamings: 52040 per month plue 10% of sales Plan B Eamings: 51785 per month plus 12% of sales Plan C Eamings 51530 per month plus 15\% of sales Your total compensation will increase for larger alaies yolume and docrease when sales go down. There is a trade off in the three plant. If you want a higher salary, you need to accept a lower oommission. To figure out which plan is best for you, you need to estimate the amount of sales you expect to make during the year. Estimate (Case 1) Sales are about the same every month. Use $4000 as the average per morth. You need to find the total for the entre yoar. Sales are about the same for the firt ten months of the year: $4,000 per month. For November and December they double the previous montis tolal. You neod to find the sales total, in dollars, for the entipe year, using difforent assumptons for revemue. Cakulate your total yearty sales revenie. Cakcutate how much commisuion (bonuw) you woud aan yearly for each case Caioulate the anmual salary for each salary plan. Combine the two paymonts to find which saiary plas pays the most in Case 1

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

Fundamentals Of IT Audit For Operational Auditors

Authors: Timothy McWilliams

1st Edition

1634541332, 978-1634541336

More Books

Students also viewed these Accounting questions

Question

What steps will Sara need to take to conduct a benefit audit?

Answered: 1 week ago