Joe needed a job to at least cover his university tuition next year. Acme Vacuum Company would
Question:
Joe needed a job to at least cover his university tuition next year. Acme Vacuum Company would hire him to sell its vacuum cleaners on a door-to-door basis. The company estimated that Joe's variable cost per sale (which included paying Acme for the vacuums) would amount to approximately 60 per cent of the selling price of the cleaners. Joe's fixed costs for the summer (including his apartment rent and spending money) would amount to $2,500. Joe figured that he needed $4,500 to cover tuition next year. Acme estimated that a keen salesperson could sell $15,000 at retail of vacuum cleaners in a four-month period. Joe knew that he could return instead to his old summer job in a factory. Although his salary would be assured at this factory job, Joe understood he would be able to save only $3,500 for his schooling. Which job should Joe take? What factors did you consider when making your decision?
Cost Management Measuring Monitoring And Motivating Performance
ISBN: 9781118168875
2nd Canadian Edition
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook