Jason has been able to break even the last two years, but cannot turn a profit....

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Jason has been able to break even the last two years, but cannot turn a profit. He must earn $9,000 in operating income next year. Selling price per unit=$7.50 Cost for paper per unit=$.75 Cost for printing per unit-$.85 Cost for film per unit-$.45 Staff salaries=$46,000 Other operating costs=$27,030 What is the new operating income for the following suggestions? scenario 1. Lower the selling price by 10% to increase sales volume by 5%. scenario 2. Advertise on radio and social media for a combined cost of $1,000 to increase volume by 10% sceario 3. Use a more affordable paper at $.60 per unit and less expensive film at $.40 per unit. scenario 4. Instead of a fixed salary for salespeople, move to a commission-based compensation plan. Save $20,000 in salary; incur $1.60 per unit sold commission, which should increase sales volume by 20%. Jason has been able to break even the last two years, but cannot turn a profit. He must earn $9,000 in operating income next year. Selling price per unit=$7.50 Cost for paper per unit=$.75 Cost for printing per unit-$.85 Cost for film per unit-$.45 Staff salaries=$46,000 Other operating costs=$27,030 What is the new operating income for the following suggestions? scenario 1. Lower the selling price by 10% to increase sales volume by 5%. scenario 2. Advertise on radio and social media for a combined cost of $1,000 to increase volume by 10% sceario 3. Use a more affordable paper at $.60 per unit and less expensive film at $.40 per unit. scenario 4. Instead of a fixed salary for salespeople, move to a commission-based compensation plan. Save $20,000 in salary; incur $1.60 per unit sold commission, which should increase sales volume by 20%.

Answer rating: 100% (QA)

Of course Lets perform the calculations for each scenario Given Data Selling price per unit 750 Cost for paper per unit 075 Cost for printing per unit ... View the full answer