2) Bear Publishing sells a nature guide. The following information was reported for a typical...

90.2K

Verified Solution

Question

Accounting

image
image
2) Bear Publishing sells a nature guide. The following information was reported for a typical 2) month: Per Unit $ 16.00 $ Sales Variable expenses Contribution margin Fixed expenses Net operating income Total 17,600 9,680 7,920 3,600 4,320 $ What is Bear's current break-even point in unit and dollars? (Round your intermediate calculations to 2 decimal places.) 3) Data concerning Bazin Corporation's single product appear below: Selling price Variable expenses Contribution margin Per Unit $ 100 20 Percent of Sales 100% 20% 80% $ 80 Fixed expenses are $384,000 per month. The company is currently selling 6,000 units pe month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $9 per unit. In exchange, the sales staff would accept a decrease in their salaries of $46,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 500 units. What should be the overall effect on the company's monthly net operating income of this change

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students