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

Hill approach to manufacturing operations, Hill Approach to Manufacturing O...

Hill Approach to Manufacturing Operations - Operation Management  Hill's five step approach to developing manufacturing operations illustrated in table below (Hill, 1993). A

Define effectiveness and identify three businesses, From the video the frui...

From the video the fruit guys, determine the Fruit Guys business strategy. Identify three other businesses that could use the five questions the Fruit Guys used to determine effect

Interdependent sub systems - operations function, Interdependent sub-system...

Interdependent sub-systems A striking feature of complex, open systems is that each comprises a set of highly interdependent sub-systems. For instance, the human body consist

Design methods, Computer-Aided Design is one of the techniques used by Rega...

Computer-Aided Design is one of the techniques used by Regal Marine in the manufacturing of boats. With the aid of examples, critically discuss FIVE (5) techniques that are import

Deliberate sampling, Deliberate Sampling : Also  known  as purposive o...

Deliberate Sampling : Also  known  as purposive or non probability sampling this  sampling methods involves purposive or deliberate selection of  particular  unit  of the univ

Time lag effects - operations function, Time Lag Effects - Operations Funct...

Time Lag Effects - Operations Function Feedback control in complex systems can bring its own problems, due to time lag between measuring the output deviation and realising the

How did the corporation performs in the return on investment, How did the c...

How did the corporation perform the past year overall in terms of return on investment, market share, and profitability?

Explain what is corporate governance, What is corporate governance? What ro...

What is corporate governance? What role does corporate governance play in strategic planning? Why is it important? Explain your answer and provide an example.

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