{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Pittman-sol - Sales 18,600,000 18,600,000 18,000,000...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1

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

View Full Document Right Arrow Icon
PITTMAN COMPANY 20% Commission Own Sales Force 20% Commission
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

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...
View Full Document

{[ snackBarMessage ]}