Question
The management of Ty Inc. believes that by increasing salesmens salaries by $20,000, sales will increase by 500 units. The sales price per unit is
The management of Ty Inc. believes that by increasing salesmens salaries by $20,000, sales will increase by 500 units. The sales price per unit is $80 and the contribution margin is $25. Should Ty increase the salemens salaries?
No, because the change in contribution is $7,500 less than the increase in salaries.
No, because the change in contribution margin is $25,000 less than the increase in salaries.
Yes, because the change in contribution margin is $20,000 more than the increase in salaries.
Yes, because the change in contribution margin is $5,000 more than the increase in salaries.
Yes, because the change in contribution margin is $7,5000 more than the increase in salaries.
No, because the change in contribution is $5,000 less than the increase in salaries.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started