Computation to receive credit, Operation Management

Assignment Help:

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


Related Discussions:- Computation to receive credit

Explain the key factors in effective project control, Identify and describe...

Identify and describe the key factor(s) in effective project control.

Explain services from goods, Which of the following is not a characteristic...

Which of the following is not a characteristic that distinguishes services from goods? Service jobs are unskilled A service is intangible Services are perishable Services are heter

Explain what could go wrong as a result, Imagine the worst possible reports...

Imagine the worst possible reports from a system. What is wrong with them? List as many problems as you can. What are the consequences of such reports? What could go wrong as a res

Linear programming, classification of linear programming on the basis of st...

classification of linear programming on the basis of structure

Design of goods and services, construct a house of quality matrix for a wri...

construct a house of quality matrix for a wristwatch?

Describe census of population as a measure of education, 1. Education is of...

1. Education is often used as an indicator of a person's socioeconomic status. Historically, the number of years of schooling completed has been recorded in the census of populatio

Explain downward communication, Explain Downward communication. Downwa...

Explain Downward communication. Downward communication: It moves downward in an organisation. The formal communication in between a subordinate and superior where the superio

Explain low customer contact and are capital intensive, What are companies ...

What are companies that have low customer contact and are capital intensive; yet provide a service, called?

Define older quality improvement programs, Some have argued the Six Sigma p...

Some have argued the Six Sigma programs are merely repackaged versions of older quality improvement programs that originally accompanied TQM initiatives in the 1980s. Present argum

Variations in volume, Variations in Volume, Variety and Flexibility - Opera...

Variations in Volume, Variety and Flexibility - Operations Function  A classification which is of particular significance for the various issues considered in this course, re

Write Your Message!

Captcha
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