Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please write the answer in typing, not in handwriting Thank you! 1. Data concerning ABC Corporation's single product appear below: Per unit Selling Price 160
Please write the answer in typing, not in handwriting
Thank you!
1. Data concerning ABC Corporation's single product appear below: Per unit Selling Price 160 Variable expenses 41 Contribution Margin 119 Fixed expenses are $892,500 per month. The company is currently selling 9,000 units per month. Required: a. Calculate the breakeven point in units and in revenue for ABC Corp.b. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $15 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $85,000 per month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by 300 units. What should be the overall effect on the company's monthly net operating income of this change? Show your work! c. What is the margin of safety percentage for ABC corporation? Please explain what this indicator suggest. d. Please calculate the targeted sales volume and revenue if ABC seeks to achieve a target profit of 119,000Step 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