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

Explain a method that enable you to overcome the difficulty, Document three...

Document three types of cost and determine which is the most difficult to control. Support your response and identify a method(s) that would enable you to overcome the difficulty.

Explain web based training, What are some of the various opportunities that...

What are some of the various opportunities that automation has afforded, such as: telecommuting; remote work arrangements; teleconferencing; web based training etc.? What you see a

Why scheduling resources is important, Of the six reasons that scheduling r...

Of the six reasons that scheduling resources is important, select which one of the six reasons appears to be the top priority and justify your position.

Explain both or either of burglary and felony murder, Doug enters Jane%u201...

Doug enters Jane%u2019s residence through an unlocked window that he lifts open at midnight, intending to steal her first edition copy of Sense & Sensibility, which he knows was re

Explain technology meets the requisite market potential, Pharma Blitz devel...

Pharma Blitz develops and markets new technological products to be used in health care. The development of a new product operates as follows. When a new technology meets the requis

Find optimal solution affected, 1. Sydneyville manufactures household and c...

1. Sydneyville manufactures household and commercial furnishings. The office division produces two desks, rolltop and regular. Sydneyville constructs the desks in its plant outside

Why competitive priorities are important, Androsia manufactures batik fabri...

Androsia manufactures batik fabrics in a labor intensive, low-volume process on the island of Andros. The Hershey tour shows how cocoa beans are processed into chocolate using a hi

Explain the concept of merit goods, Explain the concept of merit goods with...

Explain the concept of merit goods with reference to the formal provision of education in a country.  Merit goods are those goods and services that society values and the gover

Determine the order winning criteria for organisation, 1. What are the orde...

1. What are the order winning criteria for this organisation? Where does the company sit in Schmenner's Service-Process matrix and can you detect the adoption of the principles und

Rules related to the arrangement of the work place, Related to the arrangem...

Related to the arrangement of the work place: 1.       There  should  be a definite and fixed place  for all tool sand material. 2.        Tools  materials and controls sho

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