Refer to the Moira Mondragon example. At the end of the example, there is some indication that the “right” decision is to increase the commission and thus the number of units sold. Prepare an argument that this might NOT be the best decision. Be sure to indicate what should be done instead (remember that making no changes is an alternative).

  
 

CVP Problem Moira Mondragon tells fortunes for rich clients who need her assistance in making important decisions. She has gathered the following information regarding her costs: $7,000 per month Fixed Variable $5.000 per month plus Fixed Varimb Depreclation Commissions $50 per fortune Research $30 per fortune The depreciation relates to the facility where Moira meets her clients. It has been carefully decorated and meticulously arranged to provide just the right atmosphere. Commissions are the fees paid to her network of contacts who provide referrals to her-these include doctors, psychologists, social workers and police. The research is the fact finding that must be carefully done before each appointment. Currently, Moira charges each client $750. On average, she does 20 readings per month. Sales Volume 20 readings per month Selling Price $750 per reading Depreciation $7,000 per month Commissions $50 per fortune $5,000 per month plus $30 per fortune Research