JJ Motors Inc. employs 39 sales personnel to market its line of luxury automobiles. The...
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JJ Motors Inc. employs 39 sales personnel to market its line of luxury automobiles. The average car sells for $17,000, and a 7 percent commission is paid to the salesperson. JJ Motors is considering a change to the commission arrangement where the company would pay each salesperson a salary of $1,400 per month plus a commission of 4 percent of the sales made by that salesperson. The amount of total monthly car sales at which JJ Motors would be indifferent as to which plan to select is: a. $1,820,000. b. $780,000. c. $46,667. d. $20,000. e. $54,600.
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