According to the information below If that is the case, which alternative is more attractive? (Assume that sales are expected to remainat 15,000 units under the fixed salary alternative.)
C-V-P Analysis—Changes in Variables
Modern Fun Corporation sells electronic games. Its three salespersons are currently being paid
fixed salaries of $30,000 each; however, the sales manager has suggested that it might be more
profitable to pay the salespersons on a straight commission basis. He has suggested a commission
of 15% of sales. Current data for Modern Fun Corporation are as follows:
Sales volume . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,000 units
Sales price . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40 per unit
Variable costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $29 per unit
Fixed costs . .
2006-06-29
13:05:47
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4 answers
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morpqueen
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Other - Business & Finance