Refer to requirement 3 of Exercise 8.24. Required 1. Calculate the number of units sold where the
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1. Calculate the number of units sold where the operating profit under (a) a fixed-salary plan, and (b) a lower fixed-salary and commission plan (for salespeople only) would be equal. Above that number of units sold, one plan would be more profitable than the other; below that number of units sold, the reverse would occur.
2. Calculate the operating profit or loss under each plan in requirement 1 at sales levels of (a) 50 000 units, and (b) 60 000 units.
3. Suppose the target operating profit is £168 000. How many units must be sold to reach the target under (a) the fixed-salary plan, and (b) the lower fixed-salary and commission plan?
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Management and Cost Accounting
ISBN: 978-1405888202
4th edition
Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster
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