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[ The following information applies to the questions displayed below. ] Orton Company distributes one product that sells for $ 1 1 . 5 0
The following information applies to the questions displayed below.
Orton Company distributes one product that sells for $ per unit and incurs variable expenses of $ per unit. Its monthly fixed expense is $ The company currently pays its sales representatives a sales commission of $ per unit sold; however, it is considering replacing these sales commissions with sales salaries of $ per month. Orton would like your help in creating a costvolumeprofit CVP graph and a profit graph for both compensation scenarios up to a sales volume of units.
Download the Excel file, which you will use to create the CVP graphs and profit graphs within Tableau.
Upload the Excel file into Tableau by doing the following:
Open the Tableau Desktop application.
On the lefthand side, under the "Connect" header and the To a file" subheader, click on "Microsoft Excel."
Choose the Excel file and click "Open."
Since the only worksheet in the Excel File is "Orton Company" it will default as a selection with no further import steps nepred
Iption
I Commissions
Salaries.
Required:
Note: Note that for all questions below you may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.
a Why is the angle of the orange line steeper than the angle of the blue line?
The contribution margin per unit in the salarybased compensation scheme is lower than the contribution margin per unit in the commissionbased compensation scheme.
The contribution margin per unit in the salarybased compensation scheme is higher than the contribution margin per unit in the commissionbased compensation scheme.
The total fixed expense in the salarybased compensation scheme is higher than the total fixed expense in the commissionbased compensation scheme.
The total fixed expense in the salarybased compensation scheme is lower than the total fixed expense in the commissionbased compensation scheme.
b Which of the following statements explains how to compute the sales volume at which the two lines intersect?
The difference between the two scenarios' total fixed expense divided by the difference between their respective contribution margins per unit.
The difference between the two scenarios' total fixed expense plus the difference between their respective contribution margins per unit.
The difference between the two scenarios' total fixed expense multiplied by the difference between their respective contribution margins per unit.
The difference between the two scenarios' total fixed expense minus the difference between their respective contribution margins per unit.
c Which of the following equations explains how to compute the difference in profit between the two scenarios at a sales volume of units?
units units
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