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kykrilka [37]
3 years ago
9

Which of the following is not true about commission-only compensation plans for sales persons? Sales personnel are only compensa

ted for their performance. Commission-only plans tend to result in better service to customers. Commissions are usually set at some percent of sales that are closed. It is harder for managers to control the time spent by sales persons on non-selling tasks. Commission-only plans are attractive to firms with limited resources since compensation is treated as a variable cost.
Business
1 answer:
jolli1 [7]3 years ago
4 0

Answer:

It is the first one you typed

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Hunter & Sons sells a single model of meat smoker for use in the home. The smokers have the following price and cost charact
Yuri [45]

Answer:

a. 7,900

b. 10,100

Explanation:

As for the provided information,

We know at break even point taxes shall be = 0 as there are no profits and no losses.

a. At break even: = \frac{Fixed\ Cost}{Contribution}

Fixed Cost = $308,100

Contribution per unit = Selling price - Variable cost = $79 - $40 = $39

Therefore, break even units = \frac{308,100}{39} = 7,900 smokers

b. In case the company wants a profit of $51,480 after tax @ 40% then,

Earnings before taxes = \frac{51,480}{1 - 0.4} = $85,800

Therefore, number of units = \frac{Fixed\ Cost + Profit\ before\ tax}{Contribution\ per\ unit}

= \frac{308,100 + 85,800}{39} = 10,100

5 0
3 years ago
Rowell Company spent $3 million two years ago to build a plant for a new product. It then decided not to go forward with the pro
ELEN [110]

Answer:

B. If the building could be sold, then the after-tax proceeds that would be generated by any such sale should be charged as a cost to any new project that would use it.

Explanation:

The proceeds from a potential sale are the opportunity cost of using the building for a given project instead of selling to a third party. Not including any cost will lead to project not recovering the entire capital used in it.

Is important to notice this is the after-tax proceeds from the sale of the building.

3 0
3 years ago
A person who can afford a monthly payment of and signs a loan
Bond [772]

Answer:

4000

Explanation:

5 0
3 years ago
The following information is available regarding the total manufacturing overhead of Molsen Company for a recent four-month peri
Sonja [21]

Answer:

$198,000

Explanation:

Calculation to determine what the total manufacturing overhead estimated for August is

First step is to calculate the Variable element

Variable element=($198,000 - $153,000)/(110,000 - 80,000)

Variable element=$45,000/30,000

Variable element= $1.50

Second step is to calculate the Fixed element

Fixed element=$198,000 - ($1.50 x 110,000)

Fixed element=$198,000-$165,000

Fixed element = $33,000

Now let compute total manufacturing overhead

Total manufacturing overhead=$33,000 + ($1.50 x 110,000)

Total manufacturing overhead=$33,000+$165,000

Total manufacturing overhead= $198,000

Therefore Using the high-low method, compute total manufacturing overhead estimated for August is $198,000

6 0
3 years ago
Following are income statements for Hossa Corporation for 20X1 and 20x2. Percentage of sales amounts are also shown for each ope
I am Lyosha [343]

Please find full question attached Answer and Explanation:

Please find full answer and explanation attached

We have done a change analysis using data from Hossa's net income statement

From the analysis we can observe that only increase in sales brings a positive effect and therefore the result of increase in net income

7 0
3 years ago
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