Instructions:

Read the problem below and refer to the spreadsheet provided. The spreadsheet values highlighted in yellow can be manipulated in

order to determine possible outcomes and answer the questions. You must answer the follow$-$up questions $($a$-$e$)$ correctly to receive

full credit.

Problem:

Franco Welles, sales manager for Nanek, Inc., is trying to decide whether to pay a sales rep for a new territory with straight commission

or a combination plan. He wants to evaluate possible plans$-$to compare the compensation costs and profitability of each. Welles

knows that sales reps in similar jobs at other firms make about $$36,000$ a year.

The sales rep will sell two products. Welles is planning a higher commission for Product B$-$because he wants it to get extra effort.

From experience with similar products, he has some rough estimates of expected sales volume under the different plans and various

ideas about commission rates. The details are found in the spreadsheet. The program computes compensation and how much the

sales rep will contribute to profit. "Profit contribution" is equal to the total revenue generated by the sales rep minus sales

compensation costs and the costs of producing the units.

Spreadsheet

The spreadsheet values outlined in yellow can be changed in order to determine possible outcomes. You can find the initial values in

the corresponding blue cells in columns E and F$.$ Start by entering the initial values into columns B and C $.$ Then review the questions

below and adjust the values in columns B and C to determine the correct answers.

fill in table