What the change in compensation plan should increase

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The following data relate to Tootsie Company which sells a single product: Unit selling price P 20.00 Purchase cost per unit 11.00 Sales commission, 10% of selling price 2.00 Monthly ?xed costs P 80,000 The firm's salespersons would like to change their compensation from a 10 percent commission to a 5 percent commission plus P20.000 per month in salary. They now receive only commission.

Question 1: The change in compensation plan should increase the monthly breakeven point in units by?

Reference no: EM132633548

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