It's Your Turn. Show Us What YouKnowShannon's Brewery in Keller, Texas isconsidering using a sales team to help itpenetrate market areas not served by itscurrent distributors. However, Shannon Carter,the CEO, wants to know whether it would becheaper to hire an independent outside salesforce rather than hire and train his own salespersonnel. Estimates are that the costs ofhiring, training, and maintaining his own salesforce would entail fixed costs of salaries andadministrative overhead of $300,000 peryear. These sales people would also receive a2.9% commission on all sales. If going with theindependent sales force option, all costs wouldbe variable in that these reps would be paid acommission of 10.8% on all sales. At whatlevel of sales will the costs of each sales forcebe equal? Round your answer to the nearestdollar value. Round your answer to thenearest one dollar.

Let the level of sales be ‘$ X’. At $ X level, the cost of hiring outside sales force and cost of…

Answered: It's Your Turn. Show Us What You Know…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The company president does not believe that the formula should be altered for fear it will tarnish the company’s brand. She prefers that the company become more efficient in manufacturing the product. If fixed manufacturing costs can be reduced by $250,000 and variable direct manufacturing labor costs are reduced by $1 per unit, will Westerly achieve its target cost?
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Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
Danielle Hastings was recently hired as a cost analyst by CareNet Medical Supplies Inc. One of Danielle’s first assignments was to perform a net present value analysis for a new warehouse. Danielle performed the analysis and calculated a present value index of 0.75. The plant manager, Jerrod Moore, is very intent on purchasing the warehouse because be believes that more storage space is needed. Jerrod asks Danielle into his office and the following conversation takes place: Jerrod: Danielle, you’re new here, aren’t you? Danielle: Yes, I am. Jerrod: Well, Danielle, I’m not at all pleased with capital investment analysis that you performed on this new warehouse. I need that warehouse for my production. If I don’t get it, where am I going to place out output? Danielle: Well, we need to get product into our customer’s hands. Jerrod: I agree, and we need a warehouse to do that. Danielle: My analysis does not support constructing a new warehouse. The numbers don’t lie; the warehouse does not…
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