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what is the answer for the 2 questions? Company XYZ is specialized in producing and selling smart watches. The company currently has two products and
what is the answer for the 2 questions?
Company XYZ is specialized in producing and selling smart watches. The company currently has two products and is planning to improve it profits in the coming years. The company is thinking of introducing a sales commission to encourage its sales people to make more sales and improve company's profitability. When designing the sales commission the company should base the sales commission on: a. The color of the product b. The contribution margin . The number of employees O d. None of the given answers e. The selling price Company XYZ produces and sells scientific calculators. The company is currently producing and selling 10,000 units. At this level, the fixed expenses were $ 10,500. In order to expand sales, the company plans to reduce the selling price by $2, which is expected to improve unit sales by 40% and achieve fixed cost savings of $3,000. Given that the company does not pay commissions to its sales people, the variable expenses per unit are expected to remain the same. What would be the impact on profit? a. Increase by $1,000 b. Decrease by $6,000 C. No change d. Decrease by $5,000 Increase by $2,000Step by Step Solution
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