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SPL W Inc, manufactures front fenders that are sold by brokers. The brokers are paid a commission of 18% of sales. The partial statement of

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SPL W Inc, manufactures front fenders that are sold by brokers. The brokers are paid a commission of 18% of sales. The partial statement of earnings for the year ended September 30, 2021 is as follows SPI-W Inc. Statement of Earnings September 30, 2021 S26,000.00 $11.700.000 2.870.000 Sales Cost of Goods Sold Variable Fixed Gross Margin Expenses Commissions Fixed Costs Operating Income 14,570.000 $11.43000 4.680.000 3.420.000 8,100,000 53.330,000 SPI.W Inc. tus had several meetings and the CFO, Billy know it All, suggests that the company consider hiring its own stuff to replace the heckers. The company will pay its own staff a commission of 10% and incurfined costs of 2 a. Calculate SPI W Inc.'s breakeven point in sales dollars for the year 2021. as it is currently with the brokers. (8 marks) M CSC All 1,700.00 2.870,000 14570.000 $11,430.000 Fixed Gross Margin Expenses Commissions Fixed Costs Operating Income 4,680,000 3,420,000 8.100,000 $3.330.000 SPI-W Inc. has had several meetings and the CFO, Billy know it All, suggests that the company consider hiring its own staff to replace the brokers. The company will pay its own staff a commission of 10% and incur fixed costs of $2,080.000 a. Calculate SPI-W Inc.'s breakeven point in sales dollars for the year 2021, as it is currently with the brokers. (8 marks) b. Calculate SPI-W Inc.'s breakeven point in sales dollars for the year 2021, if the company had its own sales people. (8 marks) C. Using operating leverage at the current sales, consider i) current brokers. ii) own staff. Describe the advantage and disadvantages of each scenario. (10 marks) d. If SPI-W Inc. considers increasing the commission for their own proposed staff to 15%, keeping all other costs the same, how much revenue (in dollars) would SPI-W Inc, need to generate to earn the same operating income it did in 2020? (8 marks) Click SALA alfamusers. SMA Save and some

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