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

Are operations and change strategy linked, 1.  Are operations and change st...

1.  Are operations and change strategy linked?  Answer: Yes operations strategy must be implemented and again this process presents choices that must be considered. The implemen

Explain manufacturing sector and service sector, As a library or Internet a...

As a library or Internet assignment, find the US productivity rate (increase) last year for the (a) national economy, (b) manufacturing sector, and (c) service sector. Where can yo

Reduce failures and improve productivity, Question: What Maintenance po...

Question: What Maintenance policies to be done by the operations manager to reduce failures and improve productivity? • Emphasize on suitable maintenance practices. • Give a

Explain objectives of job evaluation, Explain objectives of job evaluatio. ...

Explain objectives of job evaluatio. Objectives of job evaluation: a) Decides the relative values of various jobs in an organization.  b) Helps to formulate a suitable a

Queuing, For simplicity, assume that each plane landing between 6am and 8am...

For simplicity, assume that each plane landing between 6am and 8am carries 240 passengers, 75% EU and 25% non-EU citizens. Passengers from each flight continuously join (at a const

Define critical path, Define Critical Path. Critical Path: Computatio...

Define Critical Path. Critical Path: Computation of Earliest and Latest Values of the events of the specified network is as follows:-  Event              EOT

Describe welding machine by manufacturing bike frames, Management believes ...

Management believes 6,000 WVD drums could be sold each year if the company had sufficient manufacturing capacity. As an alternative to adding another welding machine, management ha

Productivity in the service sector, Productivity in the Service Sector ...

Productivity in the Service Sector We know that the challenges for operations managers in future will lie in increasing the productivity of the service sector. As agriculture

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