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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
Ski Boards, Inc., wants to enter the market quickly with a new finish on its ski boards. It has two choices: (A) make major modifications at a fixed cost of $26,000, or (B) purchas
Feedback - Advantages of Statistical Process Control SPC is a clear example of negative-feedback system control, providing management with timely information on the state of
explain the extend to which SCM is applicable to a service operation like Cruise int.
Why do firms engage in FDI when alternatives such as exporting and licensing are available? How do location-specific advantages influence organisational decisions on FDI?
Find 5 organizations (one that fits each of the below categories) and include the Web site link and the reason it fits the category: 1-Entrepreneurial 2-Machine bureaucracy
the rate of use of a particular raw materials from stores is 20 units per year. the cost of placing and recieving an order is Rs. 40. the cost of each unit is rs. 100 . the cost of
Global expansion is fuelled by a (n): Answer (1) shrinking customer market, lower foreign labour costs, and advances in technology. (2) Expanding new customer market, lower foreign
What are the advantages of using multiple sourcing strategies? Advantages of using multiple sourcing: a. May assist negotiate and drive down prices while more suppliers e
Develop a Work Breakdown Structure (WBS) for a project in which you are going to build a bicycle and identify two major components with three levels of details for each component
A
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