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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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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.
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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