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SEAL CORP Budgeted Contribution Margin Income Statement Sales $10,000,000 Less Variable costs Cost of sales (6,000,000) Commissions (2,000.000) Contribution margin 2,000,000 Less fixed costs Seding
SEAL CORP Budgeted Contribution Margin Income Statement Sales $10,000,000 Less Variable costs Cost of sales (6,000,000) Commissions (2,000.000) Contribution margin 2,000,000 Less fixed costs Seding & administrative expenses $100,000 Net income $ 1,900,000 Seal is considering the possibility of employing its own salespersons. Three individuals would be required, at a salary of $30,000 each, plus total commissions of 5% of sales for all three individuals. In addition, a sales manager would be employed at a fixed annual salary of $160,000. Required a compute Seal's break-even point in sales dollars based upon the company's budgeted income statement, assuming that the company continues to use independent sales agents and that they are currently paid at a commission rate of 20% of sales. (2 marks) D. Compute Sear's break-even point in sales dollars, assuming that the company employs its own salespersons as described below the income statement above (5 marks) computere margin of safety for a) and b) and indicate which scenario is riskier and why. (2 marks) 1Ti - BIO =
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