Question: Glade, Inc. is trying to decide whether to increase the commission-based pay of its salespeople. Currently, each of its five salespeople carns a 9% commission
Glade, Inc. is trying to decide whether to increase the commission-based pay of its salespeople. Currently, each of its five salespeople carns a 9% commission on the units they sell for $100 each, plus a fixed salary of $40,900 per person. Glade hopes that by increasing commissions to 14% and decreasing each salesperson's salary to $21,800, sales will increase because salespeople will be more motivated. Currently, sales are 17,000 units. Glade's other fixed costs. NOT including the salespeople's salaries, total $594,000. Glade's other variable costs, NOT including commissions, total $17 per unit. a. What is the current profit? Current Proft b. What is the current break-even point in units? (Round your answer to the nearest whole number.) Break-Even Point units c. What would the break-even point in units be if commissions are increased and salaries decreased? (Round your answer to the nearest whole number.) Break-Even Point units
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