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enot [183]
3 years ago
11

Water World sells wake boards and water skis and pays sales commissions based on product sales price. The wake boards sell for a

higher price than the skis and the skis have a higher contribution margin per unit than the wake boards. Which of the following are true? The company would rather see more skis sold as it creates the higher profit per unit for the company. Sales commissions based on sales price would be ideal to use under these circumstances. Salespersons will be motivated to sell more wake boards as they will create a higher commission per unit for them. The company should not pay sales commissions on these products.
Business
1 answer:
victus00 [196]3 years ago
3 0

Answer:

Salespersons will be motivated to sell more wake boards as they will create a higher commission per unit for them.

The company would rather see more skis sold as it creates the higher profit per unit for the company.

Explanation:

As from the company's perspective the sales of skies shall be more, as it offers higher revenue per unit, in form of higher contribution than that of boards per unit, the company estimates to sell more of these units.

Further, as the sales commission is based on the price of article sold, and boards have higher selling price,

As sales commission is to be earned by individual acting as agent will sell more units of boards to get higher commission.

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Answer:

c. $0 worth of buyer surplus and unknown amount of seller surplus

Explanation:

Given that

Selling price of house = $500,000

The purchase value of house =$500,000

By considering the above information,  the purchase and sales value are the same which reflects that the buyer surplus is zero and there is no definite amount or unknown amount of seller surplus as the data is not given.

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Answer:

a.Georgeland has an absolute but not a comparative advantage in producing clothing.

Explanation:

A country has a comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.

A person has an absolute advantage in production if it produces more quantities of the good when compared with other countries.

Georgeland produces more quantities of both food and clothes when compared to Alland, so it has absolute advantage in both activities .

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the opportunity cost of producing clothes = 32 / 16= 2

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