Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 28 1 pts Premier Corporation sells two models of home ice cream makers, Mister Ice Cream and Cold King. Current sales total 60,000 units,

image text in transcribed
image text in transcribed
Question 28 1 pts Premier Corporation sells two models of home ice cream makers, Mister Ice Cream and Cold King. Current sales total 60,000 units, consisting of 21,000 Mister Ice Cream units and 39,000 Cold King units. Selling price and variable cost information follow: Mr. Ice Cream Cold King P37.00 Selling Price Variable Cost P43.00 20.50 32.50 Salespeople currently receive flat salaries that total P200,000. Management is contemplating a change to a compensation plan that is based on commissions in an effort to boost the company's presence in the marketplace. Two plans are under consideration: Plan A: 10% commission computed on gross peso sales. Mister Ice Cream sales are anticipated to be 19,500 units. Cold King sales are expected to total 45,500 units. . Plan B 30% commission comnuted on the basis of nraduction Plan A: 10% commission computed on gross peso sales. Mister Ice Cream sales are anticipated to be 19,500 units. Cold King sales are expected to total 45,500 units. Plan B: 30% commission computed on the basis of production contribution margins. Mister Ice Cream sales are expected to total 39,000 units. Cold King sales are anticipated to be 26,000 units What is the current sales mix associated with Mr. Ice Cream and Cold King? 30% for Mr. Ice Cream and 70% for Cold King 70% for Mr. Ice Cream and 30% for Cold King 65% for Mr. Ice Cream and 35% for Cold King O 35% for Mr. Ice Cream and 65% for Cold King

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

Using Accounting & Financial InformationAnalyzing, Forecasting, And Decision Making

Authors: Mark S. Bettner

2nd Edition

1947098683, 9781947098688

More Books

Students also viewed these Accounting questions

Question

Identify the job expectancy rights of employees.

Answered: 1 week ago