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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
how can lean principles be applied further to a business?
Discuss the long-run consequences of your decision.
integrated systems
• ABC Ltd. is in the business of manufacturing one type of valves for last 3 years. • Their sales have grown from 10,000 to about 50,000 valves per month. • Now they are planning t
How the expected time estimate is calculated in PERT ? In PERT the expected time estimate is computed on the basis of Beta distribution of time estimates.
A company is setting up an assembly line to produce 192 units per 8-hour shift. The following table identifies the work elements, times and immediate predecessors: (a) Wh
Provide a brief introduction on all steps involved in Procurement process? 1. Purchase requisition or purchase Indent. 2. Floating the purchase enquiry/tender. 3. Receiving quot
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
where can I get a practice test?
After reading the Concluding Case entitled "Barbara's World of Windows, Fabrics, and Accessories", what are the major problem issues facing Sandy, and what specific recommendations
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