What advice would you give the owner of the dealership

Assignment Help Managerial Accounting
Reference no: EM132883264

Problem - Two months ago, the owner of a car dealership (and a current football star) significantly changed his sales manager's compensation plan. Under the old plan, the manager was paid a salary of $6,000 per month; under the new plan, she receives 2 percent of the sales price of each car sold. During the past two months, the number of cars sold increased by 40 percent, but the dealership's margins (and profits) significantly declined. According to the sales manager, Consumers are driving harder bargains and I have had to authorize significantly lower prices to remain competitive. What advice would you give the owner of the dealership?

Reference no: EM132883264

Questions Cloud

Which step of scientific method : Which step of the scientific method is most important, in your opinion? In your discussion, define and describe this step.
What role does the hr department play in an organization : What role does the HR department play in an organization?
What value should LGM put in inventory of Zeros : LGM Ltd has 200 items of a product Zeros in inventory at 31 March 2021. What value should LGM put in inventory of Zeros
Increasing economic uncertainty and problems : With the increasing economic uncertainty and problems of the 2008 global financial crisis, enterprises should focus their HR policy solely on downsizing and ret
What advice would you give the owner of the dealership : Consumers are driving harder bargains and I have had to authorize significantly lower prices to remain competitive. What advice would you give the owner
Which processes could be drivers of macroevolution : What does it mean for a hypothesis to be falsifiable and why is it important? Which processes could be drivers of macroevolution?
Negotiations for a collective bargaining agreement : Course: Labor Relations BBA 329 When negotiations for a collective bargaining agreement (CBA) between an employer and union begin, generally each side presents
Explain motivational theories are effective : Motivational theories are effective when we focus on the needs of our employees.
Stop bacterial infections are natural compounds : Nearly all the antibiotics used to stop bacterial infections are natural compounds that come from microbes themselves

Reviews

Write a Review

Managerial Accounting Questions & Answers

  Manage budgets and financial plans

Explain the budgeting process and its importance to a business, identifying the components of different budgets, forecast estimates for inclusion in the budgets.

  Prepare a retained earnings statement

Prepare a retained earnings statement for the year and Prepare a stockholders' equity section of given case.

  Prepare a master budget for the three-month period

Prepare a master budget for the three-month period.

  Construct the companys direct labor budget

Construct the company's direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced.

  Evaluate the predetermined overhead rate

Evaluate the Predetermined Overhead Rate

  Determine the company''s bid

Determine the company's bid if activity-based costing is used and the bid is based upon full manufacturing cost plus 30 percent.

  Compute the pool rates for the different activities

Complete the schedule to compute the pool rates for the different activities.

  Prepare Company financial statements

Prepare Company financial statements

  Prepare an analysis of terracycles

This individual assignment is based on the TerraCycle Inc.

  Discuss the ethical issues

Discuss the ethical issues

  Political resources in emerging markets

Calculate the GDP in Income Approach  and Expenditure Approach

  Management accounting - ehsan electronics company

A new plant accountant suggested that the company may be able to assign support costs to products more accurately by using an activity based costing system that relies on a separate rate for each manufacturing activity that causes support costs.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd