Pittman-sol - Sales 18,600,000 18,600,000 18,000,000 18,000,000 Less Variable costs 0.03 Manufacturing Sales commission Total variable costs

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PITTMAN COMPANY 15% Commission 20% Commission Own Sales Force Sales 16,000,000 1.00 16,000,000 1.00 16,000,000 1.00 Less: Variable costs Manufacturing 7,200,000 7,200,000 7,200,000 Sales commission 2,400,000 3,200,000 1,200,000 Total variable costs 9,600,000 0.60 10,400,000 0.65 8,400,000 0.53 Total contribution margin 6,400,000 0.40 5,600,000 0.35 7,600,000 0.48 Less: Fixed costs Manufacturing 2,340,000 2,340,000 2,340,000 Marketing 120,000 120,000 2,520,000 Administration 1,800,000 1,800,000 1,725,000 Interest 540,000 540,000 540,000 Total fixed costs 4,800,000 0.30 4,800,000 0.30 7,125,000 0.45 Income before taxes 1,600,000 0.10 0.00 0.00 BEP
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PITTMAN COMPANY 20% Commission Own Sales Force 20% Commission Own Sales Force
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Unformatted text preview: Sales 18,600,000 18,600,000 18,000,000 18,000,000 Less: Variable costs 0.03 Manufacturing Sales commission Total variable costs 12,090,000 9,765,000 11,700,000 9,450,000 Total contribution margin 6,510,000 8,835,000 6,300,000 8,550,000 Less: Fixed costs Manufacturing 2,340,000 2,340,000 2,340,000 2,340,000 Marketing 120,000 2,520,000 120,000 2,520,000 Administration 1,800,000 1,725,000 1,800,000 1,725,000 Interest 540,000 540,000 540,000 540,000 Total fixed costs 4,800,000 7,125,000 4,800,000 7,125,000 Income before taxes 1,710,000 1,710,000 1,500,000 1,425,000 0.12 DOL 3.8 5.2 Increase/(Decrease) in Profit 0.12...
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This note was uploaded on 01/16/2012 for the course MBA 101 taught by Professor Wormer during the Spring '08 term at Indian Institute Of Management, Ahmedabad.

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Pittman-sol - Sales 18,600,000 18,600,000 18,000,000 18,000,000 Less Variable costs 0.03 Manufacturing Sales commission Total variable costs

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