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

Describe be sure to justify your reasons, How would you allocate the $100,0...

How would you allocate the $100,000 bonus money and why? Remember, no 2 managers can get the same amount. Be sure to justify your reasons.

Hard, Ask quesThe Delicious Apple Company has orchards in Red City, Golden,...

Ask quesThe Delicious Apple Company has orchards in Red City, Golden, and Macville Estimated amounts of apples to be available from the three orchards are the following: Red City

Define what is divine command theory, What is Divine Command theory? Given ...

What is Divine Command theory? Given the power gap between God and humanity how do we make the moral demands work? How do we make Divine command theory work?

Explain fedex manufacturing process, Describe FedEx manufacturing process a...

Describe FedEx manufacturing process and scheduling approach

Describe the challenges and opportunities, Discuss the challenges and oppor...

Discuss the challenges and opportunities facing new types of payers and IDSs due to the ACA.

Principle of motion economy, Principle of Motion Economy: The improvem...

Principle of Motion Economy: The improvement of any method is generally  accomplished using the ideas chosen from the alternatives  throw up during the critical examination ph

Explain the service organization worry about world class, Why should a serv...

Why should a service organization worry about being world class if it does not compete outside its own national border? What impact does the Internet have on this?

Explain efficiently report of schedule of a project, Illustrate how to effe...

Illustrate how to effectively and efficiently report on the schedule of a project to the different stakeholder groups. Show calculations and provide rationale for each strategy.

Explain what both the plaintiff and defendant must do, What are the procedu...

What are the procedural steps necessary to sue a person or company for business law dispute? Discuss and illustrate what both the plaintiff and defendant must do.

Location Strategies, What are the CSF''s in making location decisions

What are the CSF''s in making location decisions

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