The Jurassic Classics has four employees on its sales team and uses a compensation that provides each person with a base salary of $42,400 per year and the opportunity to earn commission on sales. The current commission is 5% of gross sales, and sales for the most recent period were $2,650,000. Management is considering making a change to the compensation system and wants to evaluate two possible alternatives: going to a strictly commission-based compensation system and going to purely salary-based compensation. The strictly commission-based method would eliminate the salary but raise the commission to 11% of sales. If the purely salary-based approach is adopted, the salary for each person would rise to $74,200 and the commission would be eliminated.<\/p>
<\/p>
What sales level would make management indifferent between the current compensation structure and the strictly commission-based structure? What is the point of indifference between the current structure and the pure salary-based structure? (Round your answer to the nearest whole dollar.)<\/p>", "transcribed_text": "", "related_book": { "title": "Accounting Principles", "isbn": "1119491630, 978-1119491637, 978-0470534793", "edition": "10th Edition", "authors": "Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso", "cover_image": "https:\/\/dsd5zvtm8ll6.cloudfront.net\/si.question.images\/book_images\/54.jpg", "uri": "\/textbooks\/accounting-principles-10th-edition-54", "see_more_uri": "" }, "free_related_book": { "isbn": "1032227273", "uri": "\/textbooks\/the-art-and-science-of-econometrics-1st-edition-9781032227276-9781000580242", "name": "The Art And Science Of Econometrics", "edition": "1st\u00a0Edition" }, "question_posted": "2024-06-29 02:39:23", "see_more_questions_link": "\/study-help\/questions\/business-marketing-2022-June-08", "step_by_step_answer": "The Answer is in the image, click to view ...", "students_also_viewed": [ { "url": "\/a-prove-the-equation-has-at-least-one-real", "description": "(a) Prove that the equation has at least one real root. (b) Use your graphing device to find the root correct to three decimal places. 53. x - x? - 4 =0 54. 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