Question: A sales representative for a local electronics store makes a 25% commission on contribution margin per item. He is dealing with a customer on a
A sales representative for a local electronics store makes a 25% commission on contribution margin per item. He is dealing with a customer on a computer system which will retail for $1199. The store margin on computers is typically 8%. A customer interrupts him to buy a small flat screen TV with a wholesale cost of $650. The store typically makes a 25% margin on these TVs. What should he do?
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