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Using CVP to Compare Alternatives Currently Bills salespersons have salaries totaling $80,000 (included in F...

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Accounting

Using CVP to Compare Alternatives

Currently Bills salespersons have salaries totaling $80,000 (included in F of $360,000) and earn a 5% commission on each unit ($10 per briefcase). He is considering an alternative compensation arrangement where the salaries are decreased to $35,000 and the commission is increased to 20% ($40 per briefcase). Compute the BEP in units under the proposed alternative. Recall that P = $200 and V = $80 currently.

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