A salesperson in a recurring revenue firm is paid the equivalent of 2.5 months sales revenue for

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A salesperson in a recurring revenue firm is paid the equivalent of 2.5 months’ sales revenue for each new customer added. The charge for the service is \($120\) per month, and providing the service costs the company \($50\) per month per customer. It costs \($25\) to initially hook up each new customer. What would be the effect on this month’s expenses if the salesperson added fifty-five new customers this month?

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Entrepreneurial Financial Management An Applied Approach

ISBN: 9780367335410

5th Edition

Authors: Jeffrey R Cornwall, David O Vang, Jean M Hartman

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