While the results of calculations and or graphs are expected, you also need to explain what they mean to Bubba. Assume that Bubba knows absolutely nothing about any of the analysis you provide. What does Bubba need to consider in his decision of whether to stick with commissions or eliminate them?

$ 80.00 Bubba is considering the elimination of sales commissions completely 41.50 and increasing salaries by $160,000 10.50 Sales price Per unit variable expenses Purchase cost Sales commissions Total per unit variable costs Total annual fixed expenses Advertising Rent annually. Under the current $ 52.00 structure, he expects sales of around 20,000 hats. $ 98,500 146,500 Salaries 255.000 Total fixed expenses $500.000