Question
In: Accounting
Glade, Inc. is trying to decide whether to increase the commission-based pay of its salespeople. Currently,...
Glade, Inc. is trying to decide whether to increase the commission-based pay of its salespeople. Currently, each of its five salespeople earns a 12% commission on the units they sell for $100 each, plus a fixed salary of $41,900 per person. Glade hopes that by increasing commissions to 17% and decreasing each salesperson’s salary to $21,600, sales will increase because salespeople will be more motivated. Currently, sales are 20,000 units. Glade’s other fixed costs, NOT including the salespeople’s salaries, total $599,000. Glade’s other variable costs, NOT including commissions, total $17 per unit.
a. What is the current profit?
b. What is the current break-even point in units?
c. What would the break-even point in units be if
commissions are increased and salaries decreased?
d. If sales increase by 9,000 units, what will profit be under the new plan?
e. At what sales level would Glade be indifferent between the lower-commission plan and the higher-commission plan?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Glade, Inc. is trying to decide whether to increase the commission-based pay of its salespeople. Currently,...
Glade, Inc. is trying to decide whether to increase the
commission-based pay of its salespeople. Currently, each of its
five salespeople earns a 6% commission on the units they sell for
$100 each, plus a fixed salary of $41,200 per person. Glade hopes
that by increasing commissions to 11% and decreasing each
salesperson’s salary to $21,200, sales will increase because
salespeople will be more motivated. Currently, sales are 20,000
units. Glade’s other fixed costs, NOT including the salespeople’s
salaries, total...
Glade, Inc. is trying to decide whether to increase the commission-based pay of its salespeople. Currently,...
Glade, Inc. is trying to decide whether to increase the
commission-based pay of its salespeople. Currently, each of its
five salespeople earns a 9% commission on the units they sell for
$100 each, plus a fixed salary of $40,200 per person. Glade hopes
that by increasing commissions to 14% and decreasing each
salesperson’s salary to $21,100, sales will increase because
salespeople will be more motivated. Currently, sales are 20,000
units. Glade’s other fixed costs, NOT including the salespeople’s
salaries, total...
Glade, Inc. is trying to decide whether to increase the commission-based pay of its salespeople. Currently,...
Glade, Inc. is trying to decide whether to increase the
commission-based pay of its salespeople. Currently, each of its
five salespeople earns a 7% commission on the units they sell for
$100 each, plus a fixed salary of $40,100 per person. Glade hopes
that by increasing commissions to 12% and decreasing each
salesperson’s salary to $21,500, sales will increase because
salespeople will be more motivated. Currently, sales are 17,000
units. Glade’s other fixed costs, NOT including the salespeople’s
salaries, total...
Glade, Inc. is trying to decide whether to increase the commission-based pay of its salespeople. Currently,...
Glade, Inc. is trying to decide whether to increase the
commission-based pay of its salespeople. Currently, each of its
five salespeople earns a 12% commission on the units they sell for
$100 each, plus a fixed salary of $41,100 per person. Glade hopes
that by increasing commissions to 17% and decreasing each
salesperson’s salary to $21,700, sales will increase because
salespeople will be more motivated. Currently, sales are 17,000
units. Glade’s other fixed costs, NOT including the salespeople’s
salaries, total...
Omni Telecom is trying to decide whether to increase its cash dividend immediately or use the...
Omni Telecom is trying to decide whether to increase its cash
dividend immediately or use the funds to increase its future growth
rate.
P0
=
D1
Ke − g
P0 = Price of the stock today
D1 = Dividend at the end of the first
year
D1 = D0 × (1 +
g)
D0 = Dividend today
Ke = Required rate of return
g = Constant growth rate in dividends
D0 is currently $3.00, Ke
is 11 percent, and...
A company pays its salespeople on a commission basis. The salespeople are paid $200 per week...
A company pays its salespeople on a commission basis. The
salespeople are paid $200 per week plus 9% of their gross sales for
that week. For example, a salesperson who sells $5000 worth of
merchandise in a week is paid $200 plus 9% of $5000, for a weekly
pay of $650.
Create an application that uses a for loop to
input each sales person’s gross sales for the week, and calculates
and displays that sales person’s weekly pay. Process one...
Green Gadgets Inc. is trying to decide whether to cut its expected dividend for next year...
Green Gadgets Inc. is trying to decide whether to cut its
expected dividend for next year from $7 per share to $4 per share
in order to have more money to invest in new projects. If it does
not cut the dividend, Green Gadgets' expected rate of growth in
dividends is 7 percent per year and the price of their common stock
will be $105 per share. However, if it cuts its dividend, the
dividend growth rate is expected...
A company pays its salespeople on a commission basis. The salespeople each receive $250 per week...
A company pays its salespeople on a commission basis. The
salespeople each receive $250 per week plus 11 percent of their
gross sales for the sales period. For example, a salesperson who
grosses $5000 in sales in the period receives $250 plus 11 percent
of $5000, or a total of $812.21. Write a program (using an array of
counters) determines for each salesperson their total sales, their
salary and additional data points. There are 12 salesmen for the
company. The...
A company pays its five salespeople on a commission basis. The salespeople receive $200 plus 10%...
A company pays its five salespeople on a commission basis. The
salespeople receive $200 plus 10% of their sale. For example, for
the employee sale of $1000, the commission is $300.
Write a C program that:
inputs each employee sales.
The program then calculates the employee commission, prints out
each employee commission.
The program calculates the total sum of all commissions paid,
and print.
Your program will use a sentinel value to exit.
You must use a one-dimensional array for...
C++ Program A company pays its salespeople on a commission basis. The salespeople each receive $250 per...
C++ Program
A company pays its salespeople on a commission
basis. The salespeople each receive $250 per week plus
11 percent of their gross sales for the sales
period. For example, a salesperson who grosses $5000 in
sales in the period receives $250 plus 11 percent of $5000, or a
total of $812.21. Write a program (using an array of
counters) determines for each salesperson their total sales, their
salary and additional data points. There are 12 salesmen
for the company. The input data file...
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