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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
Explain causes of labour turnover. Causes of Labour Turnove: (a) Voluntary withdrawals (through the worker) because of: - Not like for the present job; - Best job
the main factors that influence the service process design.
Management believes they can increase the price per chair by 10 percent in this new situation and improve profits by 10 percent. However, the sales department cautions that the pri
How might Verwaayen contribute to organizational learning at Alcatel-Lucent?
As a new manager in your department, you are tasked with the job of providing employee training for members of your department who have interactions with the legal department. In o
Reflect on the GEICO commercials you have seen and those discussed in your textbook. One of the things that these ads do is invite the audience to become involved and make an inter
what are stra thetegies used in TQM to deal with issue of cost of quality
"Fast Eddie" Flournoy manages the service equipment division of Delta Airline's Atlanta terminal. He keeps a service crew on call to repair tow tractors that break down. Tractors b
From my experience, companies need to factor in the competition and determine their market share. How might a company determine its potential market share?
How you Google's do expected dominance of the online display advertising market will affect marketers who already use the Internet for marketing communications? Will its push into
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