User Account

All Pages

Scorpion inc is trying to decide whether to increase the

Assignment Help Accounting Basics
Reference no: EM13483580

Scorpion, Inc. is trying to decide whether to increase the commission based pay of its salespeople. Currently, each of its five salespeople earns a 15% commission on the units they sell for 100$ each, plus a fixed salary of 40,000$. Scorpion hopes that by increasing commission to 20% and decreasing each salespersons salary to 25,000$, sales will increase because salespeople will be more motivated. Currently, sales are 13,000 units. Scorpion's other fixed costs, NOT including the salespeople's salaries, total 580,000$. Scorpions other variable costs, NOT including commissions, total 20$ per unit.

A. What is current profit?

B. What is the current break even point in units

C. What would the break even point in units be if commissions are increased and salaries decerased?

D. If sales increase by 4,000 units, what will profit be under the new plan?

E. At what sales level would scorpion be indifferent between the lower commission plan and the higher commission plan?

Reference no: EM13483580

Questions Cloud

Cyprus corp has excess capacity under what situations : cyprus corp. has excess capacity. under what situations should the company accept a special order for less than the
This comprehensive problem is to acquaint you with the : this comprehensive problem is to acquaint you with the content of the 2009 financial statements of home depot inc.
Imagine that you are the financial manager for a firm and : imagine that you are the financial manager for a firm and your company has a wacc of 4.5. two district managers would
B which the conversion price exceeds the stock price over : the tsetsekos company was planning to finance an expansion. the principal executives of the company all agreed that an
Scorpion inc is trying to decide whether to increase the : scorpion inc. is trying to decide whether to increase the commission based pay of its salespeople. currently each of
What decision should mink make asell before assembly the : tram manufacturing is starting business and is unsure of whether to sell its product assembled or unassembled. the unit
At the beginning of the current period griffey corp had : at the beginning of the current period griffey corp. had balances in accounts receivable of 240500 and in allowance for
Ehrmann data systems is considering a project that has the : ehrmann data systems is considering a project that has the following cash flow and wacc data. what is the projects
Calculate the exercise value of the firms warrants if the : maese industries inc. has warrants outstanding that permit the holders to purchase 1 share of stock per warrant at a

Reviews

Write a Review

Accounting Basics Questions & Answers

  Amount of indirect manufacturing costs for year

Company assembles computers from components supplied by various manufactures. Listed below are the costs incurred by the company this year: What is the amount of indirect manufacturing costs for the year?

  Prepare and unclassified balance sheet

Prepare and unclassified balance sheet as it would appearat Dec 31,2007 c) how might the statement of cash flows help the user of thefinancial statements? Compute tow cash flow ratios.

  Return on its investment problem

Jill Morris is presently leasing a small business computer from Eller Office Equipment Company. The lease requires 10 annual payments of $4,000 at the end of each year and provides the lessor (Eller) with an 8% return on its investment. You may us..

  Which one of the following is not a characteristic

which one of the following is not a characteristic generally evaluated in ratio

  Analyzing and recording merchandise transactions-both buyer

analyzing and recording merchandise transactions-both buyer and seller l.o. p1 p2 on may 11 smythe co. accepts delivery

  Prepare an activity table of cost analyses to calculate the

company a maintains an accounts receivable department that currently employs 8 people. they are interested in doing an

  Strategic management is that set of managerial decisions

strategic management is that set of managerial decisions and actions that determine the long-run performance of a

  Prepare the journal entry to record the budget

A village ordered supplies for its Fire Department at an estimated cost of $16,700. The supplies were received with an invoice for $16,800.

  Prepare a depreciation schedule assuming actual mileage

Prepare a depreciation schedule assuming actual mileage was: 2007, 40,000; 2008, 52,000; 2009, 41,000; and 2010, 27,000.

  Gain on the sale of the equipment

USACo adjusted basis in the equipment is $10,000 on the date of sale. what is the source of the $340,000 gain on the sale of the equipment?

  General fund journal entry

What General Fund journal entry should Grand Marais make on May 6, to record the approved purchase order?

  What would be the expected cost of goods sold for next month

Gemstone Corporation has a sales budget for next month of $600,000. Cost of goods sold is expected to be 30 percent of sales. All goods are purchased in the month used and paid for in the month following purchase.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd