Web Chapter 18 and 22 Day 3

Web Chapter 18 and 22 Day 3 - Cost-VolumeProfit Analysis...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Cost-Volume-Profit Cost-Volume-Profit Analysis Analysis Chapter 22 Chapter 22 NOTE: Focus on pages 880-884, 888-889, 891-893 NOTE: Focus on pages 880-884, 888-889, 891-893
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
  Versus the original plan, Snapper Company is  considering switching its compensation plan for its sales  personnel in order to improve morale.  Currently, the  company pays commissions only, but under the new plan  would replace ½ of the commission with a base salary of  $4,000.  If the company makes the change, sales are  estimated to improve by 5% provided the company does  not change the current price. Should the company make the change? Sensitivity Analysis
Background image of page 2
CM Income Statement CM Income Statement Volume Unit Total Sales Revenue 10,500 $20.00 $210,000 Less: Variable costs 13.28 139,440 Contribution margin $6.72 $70,560 Less: Fixed costs 19,900 Net Income $50,660
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Analysis of Pay for Sales Personnel Analysis of Pay for Sales Personnel
Background image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 10

Web Chapter 18 and 22 Day 3 - Cost-VolumeProfit Analysis...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online