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Use below information for Questions 1 to 3 : enses Inc. manufactures tables that are sold through a network of sales agents. The agents are
Use below information for Questions to :
enses Inc. manufactures tables that are sold through a network of sales agents. The agents are paid a commission at a
percent of sales basis. For the year ending December
Sales have been TL
Gross profit margin and operating profit margin have been reported to be and respectively.
of COGS have been variable. Besides, of operating expenditures have been variable sales commissions.
The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a
commission of and incur additional fixed costs of TL
Q Calculate the degree of operating leverage at sales TL if the company uses sales agents.
Q Saadettin Bey, the owner of enses Inc., considers employing inhouse sales staff. Calculate the change in net
income in TL if sales increase by assuming inhouse sales staff is employed.
Q Calculate the estimated sales volume in TL that would generate an identical net income for the year ending
December regardless of whether the company uses sales agents or employs its own sales staff.
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