Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Operation Management Expert

Your company has a market share of the 25%. The total market size is the $100 million. Your contribution margin (the ratio of contribution per unit over price per unit) is 20%. Your variable cost is the $16 per unit. You’re thinking of appointing ten more salespeople. The yearly cost per salesperson (comprising salary and benefits) is $120,000. Additionally, each salesperson receives as a bonus 10% of sales he or she generates. How much should your market share raise to make this a profitable action?

(Hint: To resolve the problem you require calculating the price per unit and then calculating the new contribution per unit which will reflect the added cost of 10% bonus given to the salespeople.) You should show all computations to receive credit

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M913912

Have any Question? 


Related Questions in Operation Management

A real estate developer is planning to build an office

A real estate developer is planning to build an office complex. Currently, there are three office sizes under construction; small, medium, and large. Small offices can be rented for $650 per month, medium offices can be ...

Identify each of the following 15 behaviours by its

Identify each of the following 15 behaviours by its leadership role. Write the appropriate letter in the blank before each item. Interpersonal roles Informational roles Decisional roles a. figurehead d. monitor g. entrep ...

What are some of the problems with the current systems of

What are some of the problems with the current systems of regulatory controls? What changes need ot be made to enable corporations to restrucutre their operations? What incentives need to be changed to enable corporation ...

Course human resource management foundationsnbsptopic high

Course: Human Resource Management Foundations   Topic: High Performance and the Choices Managers Make   Note: Please answer EACH of the questions in at least 200 words. Answers should be correct, substantive, professiona ...

1 you are a consultant hired by the herrington specialty

1. You are a consultant hired by the Herrington Specialty Metal Sheeting Corporation of Detroit, Michigan to assist the HR Director in redesigning the compensation system. The organization has just gone through an acquis ...

Read the background information and scenario description in

Read the background information and scenario description in sections I and II, then answer the questions in section III. Be sure you read the complete directions for preparing your case study. I. Background: OSHA Standar ...

Editing due to comment batna best alternative to

Editing due to comment: BATNA (Best Alternative To Negotiatied Agreement) looking at the strike and how the players were paid we need to analyize their choice. The main question here is with higher attendance in the end ...

How are the post-millennials likely to be different from

How are the? "Post-Millennials" likely to be different from previous? generations? A. They require products that are serious and meaningful rather than frivolous and fun. B. They require products that are completely gene ...

Employees often have negative views on the policy of hiring

Employees often have negative views on the policy of hiring outside rather than promoting from within.Employees believe they shoul always be given preference for promotion before outsiders are hired. Do you think this is ...

As more and more data are collected stored processed and

As more and more data are collected, stored, processed, and disseminated by organizations, new and innovative ways to manage them must be developed. Discuss how the data resource management methods of today will need to ...

  • 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

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate