Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please solve the math. Sales and commission will be 13.5 instead of 5 ALPHA Company is ready to sell 5000 pieces t-shirts/year in USA. The
please solve the math. Sales and commission will be 13.5 instead of 5
ALPHA Company is ready to sell 5000 pieces t-shirts/year in USA. The top management of the company worked out and found six suitable location namely, New York, Washington, Texas, Florida, Alaska and California. The company decided to take 5 Salespersons and their salary will be $800 per month per person. The company will pay the Salesperson a decent commission of $(PASSWORD) on each sale made by them in addition to their basic salary. Expected selling price of each t-shirt is $150 Find out the most economical location, both graphically and analytically. Assume all units will be sold annually. Followings are the information the company has regarding various expenses at different location: Ser Site 1. New York Monthly Expenses Variable Cost/Unit (in $) (in $) Rent 100 Packing Item Utilities 50 Sales Commission 1 Lo 10 Fixed Overhead 2 Washington Rent 1.5 Utilities 6.5 Fixed 10 Overhead 3 Texas Rent 1 Utilities 4.5 10 Fixed Overhead Rent 4. Florida 1 Utilities 50 Variable Overhead 90 Packing Item 55 Sales Commission 45 Variable Overhead 110 Packing Item 55 Sales Commission 45 Variable Overhead 95 Packing Item 50 Sales Commission 52 Variable Overhead 105 Packing item 45 Sales Commission 45 Variable Overhead 100 Packing Item 53 Sales Commission 52 Variable Overhead 6 Fixed 12 Overhead 5. Alaska Rent 1.5 Utilities 13 Fixed Overhead Rent 6 California 1 Utilities 5 10 Fixed OverheadStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started