Eliminating sales commission and increasing fixed salaries:
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The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by 31,500 annually. if this change is made, what will be the new break-even point in dollar sales and in unit sales for shop 48? would you recommend that the change be made?
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The strategy for deciding is given in clear non-technical language suitable for the novice.
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If you eliminate commission in exchange for a fixed month salary, the breakeven point will rise. ...
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