(Answered) Your company has a market share of 25 the total market size

Management Studies

Your company has a market share of 25%. The total market size is $100 million. Your contribution margin (the ratio of the contribution per unit over the price per unit) is 20%. Your variable cost is $16 per unit.

You are thinking of hiring 10 more salespeople. The annual cost per salesperson (including salary and benefits) is $120,000. In addition, each salesperson receives as a bonus 10% of the sales he or she generates. How much should your market share increase to make this a profitable action? (Hint: To solve the problem you need to calculate the price per unit and then calculate the new contribution per unit that will reflect the added cost of the 10% bonus given to the salespeople.)

View complete question

Business Management, Management Studies

Category:- Business Management
Reference No.:- M92781386
Price:- $10

Verified Expert

Priced at $20 Now at $10, Verified Solution

Have any Question?Write your Review or question?

Related Questions in Business Management

You are a contracts administrator for a contractor one of

You are a Contracts Administrator for a Contractor. One of your engineering managers found an inconsistency in the specification on a FFP solicitation (i.e., pre-award). He said the worst case could be a $3M loss for def ...

Compare and contrast static and dynamic efficiency applied

Compare and contrast static and dynamic efficiency applied to the fossil fuel market. Compare and contrast the concepts of resource rent and user cost as applied to this market and the potential differences in optimal re ...

The partners at an investment firm want to know which of

The partners at an investment firm want to know which of their two star financial planners, Brayden or Zoe, produced a higher population mean rate of return last quarter for their clients. The partners reviewed last quar ...

Explain the relationship between managing diversity and

Explain the relationship between "managing diversity and inclusion" and "diversity training." Which is most effective? Why?

Please explain exactly what is entailed in a stakeholder

Please explain exactly what is entailed in a stakeholder analysis of VW's emission scandal

Why is emotional intelligence particularly important in

Why is emotional intelligence particularly important in service jobs?

Imagine you are the chief adviser to the australian prime

Imagine you are the Chief adviser to the Australian Prime Minister. 1) Clearly explain to him the meaning of 'subprime debt'? What are the risks and advantages of such financial instruments? a) What is a CDO? b) What is ...

There are 5 categories of strategy formulation available to

There are 5 categories of strategy formulation available to utilize: directional strategies, adaptive, market entry, competitive, and implementation strategies. Is it important to formulate strategies in this specific or ...

Help me define corporate social responsibilityhelp me

Help me define corporate social responsibility. Help me conduct research on a Fortune 500 company and how do you determine just how (or if) the company ranks from a CSR perspective. Help me understand if the findings cha ...

1 develop a logic circuit that will produce a 1 on its

1. Develop a logic circuit that will produce a 1 on its output only when all three inputs are 1s or when all three inputs are 0s. 2. Apply DeMorgan's theorems to the following expression: ABC + (ABC)' + (D' + E)'

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Business Management Expert