Question
XY Company sells its unique product at $30.00 Variable costs per unit are $20.00 Total fixed sales salaries per month $40,000.00 Other fixed costs per
XY Company sells its unique product at $30.00
Variable costs per unit are $20.00
Total fixed sales salaries per month $40,000.00
Other fixed costs per month $60,000.00
Assume that the company wants to change the sales salaries as follows:
Total fixed sales salaries per month 25,000
Sales commission of 10%
Find at what sale-level is the company indifferent between the two alternatives.
Step by Step Solution
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Variable cost 20 per unit Fixed cost 40000 New fixed cost 2500...
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Cost Management Measuring Monitoring And Motivating Performance
Authors: Leslie G. Eldenburg, Susan K. Wolcott
2nd Edition
978-0-470-7694, 0470769424, 978-0470769423
