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Your company has a market share of 25%. The total market size is $100 million. Your contribution margin (the ratio of the contribution per unit over the price per unit) is 20%. Your variable cost is $16 per unit. You are thinking of hiring 10 more salespeople. The annual cost per salesperson (including salary and benefits) is $120,000. In addition, each salesperson receives as a bonus 10% of the sales he or she generates. How much should your market share increase to make this a profitable action? (Hint: To solve the problem you need to calculate the price per unit and then calculate the new contribution per unit that will reflect the added cost of the 10% bonus given to the salespeople.) You must show all calculations to receive credit
Supply Chain Strategies In this second section of the chapter we consider: 1. Breadth of supplier base - many or few suppliers? 2. Vertically integrated or virtual or
A bank has recently taken over the billing function of a company. An agreement stipulates that the bank should process 99.2% of the bills within 4 hours. A study of the current pro
A major competitive dimension that forms a company's strategic operational competitive position in their strategic planning is which of the following? Cost or price Focus Automatio
1) characterize the long run equilibrium of a perfectly competitive industry in which average costs are U-shaped as output increases, under both restricted and free entry. b)Discus
would you give an example ? haw it calculate.?
Suppose that at any period of time a photo-copier machine can either be working properly, in need of maintenance, in need of minor repair, or in need of major repair. If the photoc
You are the retiring CEO of a company which you have led for the last 10 years. You have recruited a new management team and you are addressing the final management conference whic
1. Evaluate the impact of the iPad using Porter's competitive forces model. 2. What makes the iPad a disruptive technology? Who are likely to be the winners and losers if the iP
Your company, a large online high school, is planning to implement a new innovative social networking technology for their students. The technology would allow students to get to k
Develop a way that Pandora could benefit from grid computing
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