Question: Toselt the Microsoft Surface Tablec, Best Buy decides to create a Store withina-store (5was) renting the space to Microsoft for $1,000 month it will be
Toselt the Microsoft Surface Tablec, Best Buy decides to create a Store withina-store (5was) renting the space to Microsoft for $1,000 month it will be manned by a Best Buy employee who is paid $2,000 each/month. Creating the swas (posters, special tables etc) costs $4,800, Which will last for 2 years till it has to be completely redone and refrestied. Utifities/cleaning and other costs for the area are paid by Best Buy for the whole store - the portion for the 5WW is is $300/ month. There are no-other costs to Best Buy other than the product itself which costs Best Buy $400. Best Buy Sells it for $600. 3. How mary tablets do they have to sell each month for Best Buy to break even? b. Ey the third month Rest Eury sells 100 Tablets a month. At that time, on a monthly basis, what is Operating Margin C. Best Buy management decides to incent the employees with sales commission. If they change the pay to 51,000 for the employee plus 550 for each toblet sold after the first 10 - what is the new number of Tablets that need to be sold to break even
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