Currently the $4 per T-shirt of VSG&A represents the sales commission paid to the sales force. In
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Question:
(a) If management had changed the sales force compensation structure in 2022, assuming nothing else changes, what would have been the operating income in 2022?
(b) Using the new sales force compensation structure, how many additional units will the sales force have to sell to have the operating income in 2023 be equal to the operating income in 2022?
Related Book For
Cost Accounting A Managerial Emphasis
ISBN: 978-0132109178
14th Edition
Authors: Charles T. Horngren, Srikant M.Dater, George Foster, Madhav
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