The change in compensation plan should change the monthly breakeven point by 1,071 increase 1,071 decrease 1,538 increase 1,538 decrease
The change in compensation plan should change the monthly breakeven point by 1,071 increase 1,071 decrease 1,538 increase 1,538 decrease
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The change in compensation plan should change the monthly breakeven point by
1,071 increase
1,071 decrease
1,538 increase
1,538 decrease
![The following data relate to National Co. which sells a single product:
Unit selling price
Purchase cost per unit
Sales commission, 10% of selling price
Monthly fixed costs
P20.00
P11.00
P2.00
P80,000
The firm's salespersons would like to change their compensation from a 10% commission to a 5%
commission plus P 20,000 per month in salary.
Currently, they only receive commissions as their com pensation.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb79b6d27-de15-4603-a478-0da9a65bb56a%2Fb1e2d892-c7de-4190-bb93-121e71816773%2F8ixp6f_processed.png&w=3840&q=75)
Transcribed Image Text:The following data relate to National Co. which sells a single product:
Unit selling price
Purchase cost per unit
Sales commission, 10% of selling price
Monthly fixed costs
P20.00
P11.00
P2.00
P80,000
The firm's salespersons would like to change their compensation from a 10% commission to a 5%
commission plus P 20,000 per month in salary.
Currently, they only receive commissions as their com pensation.
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