Computation to receive credit, Operation Management

Assignment Help:

Your company has a market share of 25%. The total market size is $100 million. Your contribution margin (the ratio of the contribution per unit over the price per unit) is 20%. Your variable cost is $16 per unit. You are thinking of hiring 10 more salespeople. The annual cost per salesperson (including salary and benefits) is $120,000. In addition, each salesperson receives as a bonus 10% of the sales he or she generates. How much should your market share increase to make this a profitable action? (Hint: To solve the problem you need to calculate the price per unit and then calculate the new contribution per unit that will reflect the added cost of the 10% bonus given to the salespeople.) You must show all calculations to receive credit


Related Discussions:- Computation to receive credit

Describe what is meant by a franchise, Question: a) What is a strategy...

Question: a) What is a strategy? b) Describe what is meant by a franchise. c) Henry Fayol put forward 6 primary functions of management. State the 6 functions and brief

SWOT analysis of McDonald''s order process, Please help with SWOT analysis ...

Please help with SWOT analysis of Mcdonald''s ordering process

Gantt chart, Gantt Chart The Gantt chart were made by Henry L. Gantt ...

Gantt Chart The Gantt chart were made by Henry L. Gantt approximately a century ago. Their aim is to provide an immediate comparison between schedule and realty( i.e. among p

Explain upward communication, Explain Upward Communication. Upward Com...

Explain Upward Communication. Upward Communication: It moves in the form of feedback from subordinate to the superior.  It takes the forms of: - Reports through Subordinat

Mathematical analysis of the normal distribution curve, Mathematical Analys...

Mathematical Analysis of the Normal Distribution Curve Mathematical analysis of the normal distribution curve has produced data tables which provide population statistics in r

Computer aided layout planning, Computer Aided Layout Planning This me...

Computer Aided Layout Planning This method has 3 steps. They are as follow: Preparation phase, Specification phase and Analysis In the preparation p

Describe educational and training, How the organization might adopt a techn...

How the organization might adopt a technology trend to improve the quality of the health care delivered to organization members. The board wants to know what are the "Educational a

Explain external failure costs, Q 1 The probability associated with rejecti...

Q 1 The probability associated with rejecting a high quality lot is denoted in acceptance sampling with the Greek letter alpha. Q 2 Quality control charts usually have a central

Explain the importance of performance appraisal, Explain the importance of ...

Explain the importance of performance appraisal. Significance of performance appraisal: This is helpful in operational decisions of personal management relating to pay rais

Write Your Message!

Captcha
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!

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