Msm company management believes that monthly sales

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Reference no: EM13954760

MSM Company management believes that monthly sales should average approximately $375,000 during 2014. Prepare a contribution type income statement using.

1) the current cost structure model (the model that includes salaries but no commissions) and

2) a second contribution type income statement using the proposed (fixed salary plus commission) model. 6. From the employee perspective, what level of monthly sales dollars must MSM achieve so that their monthly compensation under the combination fixed salary/commission model is equal to the current monthly fixed salary amount (currently $38,000). What are the pros and cons of making the proposed compensation structure change, focus on breakeven point, impact on employee morales/motivation, MSM operating profit at different sales levels, etc

Reference no: EM13954760

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