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At what sales level is the company indifferent

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Question - A company sells its products at P30 per unit. Unit variable cost is P22 and total fixed costs total to P100,000 per month. The company currently pays salaries of P40,000 per month but with no commission. It is considering a compensation plan whereby the salespeople would receive 5% commission based on sales, but their salaries would be decreased to P25,000 per month. At what sales level is the company indifferent between two compensation plans?

Reference no: EM133086103

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