BM Motors, Inc. employs 40 sales personnel to market its line of luxury automobiles. The average car sells for P1,200,000 and a 6% commission is paid to the salesperson. BM Motors is considering a change to a commission arrangement that woul d pay each salesperson a salary of P24,000 per month plus a commission of 2% of the sales made by that salesperson. The amount of total car sales at which BM Motors would be indifferent as to which plan to select is A. P22,500,000 C. P24,000,000 B. P30,0 00,000 D. P12,000,000
BM Motors, Inc. employs 40 sales personnel to market its line of luxury automobiles. The average car sells for P1,200,000 and a 6% commission is paid to the salesperson. BM Motors is considering a change to a commission arrangement that woul d pay each salesperson a salary of P24,000 per month plus a commission of 2% of the sales made by that salesperson. The amount of total car sales at which BM Motors would be indifferent as to which plan to select is A. P22,500,000 C. P24,000,000 B. P30,0 00,000 D. P12,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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BM Motors, Inc. employs 40 sales personnel to market its line of luxury automobiles. The
average car sells for P1,200,000 and a 6% commission is paid to the salesperson. BM Motors
is considering a change to a commission arrangement that woul d pay each salesperson a salary
of P24,000 per month plus a commission of 2% of the sales made by that salesperson.
The amount of total car sales at which BM Motors would be indifferent as to which plan to select
is A. P22,500,000 C. P24,000,000
B. P30,0 00,000 D. P12,000,000
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