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The local jewelry store is running a special on gold bracelets for the month of February. Each of these bracelets sells for $75, but the
The local jewelry store is running a special on gold bracelets for the month of February. Each of these bracelets sells for $75, but the jewelry store's cost for the bracelet is just $30. The salesperson earns a $5 commission on each bracelet sold. Fixed costs at the store run $2,000 per month. The store's sales volume is currently 60 bracelets each month. (c) At the current sales volume, two salespeople are sufficient to handle the load. But the company is optimistic that these bracelet sales will increase. If sales exceed 100 bracelets in a month, they will need to hire another salesperson, who would earn a salary of $750 per month in addition to the commission of $5 per bracelet sold. What does this tell us about the relevant range of activity for this jewelry store?
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