Question

You are the sales manager of a company. Your sales commissions (income) are directly related to...

You are the sales manager of a company. Your sales commissions (income) are directly related to the revenue the company generates. So, you would like the company to increase revenue.

You have lunch with the company’s pricing manager. Should you convince her to increase or decrease the company’s price of its product ? Please explain.

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The LOLA'S store presents the following information related to your income and costs: Sales Price .................................
The LOLA'S store presents the following information related to your income and costs: Sales Price .............................. $ 42 Invoice costs ........................... 22 Sales commissions ............... .. 6 Shipping .................................. 4 Advertising ........................... $ 60,000 Rent .................................... .. 30,000 .............................. .. 150,000 5. If management decides to eliminate commissions and increase salaries to $ 230,000, what would be the new BEP. 6. If management decides to increase the price to $ 45, raise the variable costs to $ 36, the fixed...
Last month you assumed the position of manager for a large car dealership. The distinguishing feature...
Last month you assumed the position of manager for a large car dealership. The distinguishing feature of this dealership is its "no hassle' pricing strategy; prices (usually well below the sticker price) are posted on the windows, and your sales staff has a reputation for not negotiating with customers. Last year, your company spent $2 million on advertisements to inform customers about its “no hassle policy” and had overall sales revenue of $40 million. A recent study from an agency...
Kenmore Company manufactures two products. Both products have the same sales? price, and the volume of...
Kenmore Company manufactures two products. Both products have the same sales? price, and the volume of sales is equivalent.? However, due to the difference in production? processes, Product A has higher variable costs and Product B has higher fixed costs. Management is considering dropping Product B because that product line has an operating loss. Kenmore Company Income Statement Month Ended June 30, 2018 Total Product A Product B Net Sales Revenue $170,000 $85,000 $85,000 Variable Costs 150,000 77,000 73,000 Contribution...
As a manager of a firm, you have estimated that the demand for the product the...
As a manager of a firm, you have estimated that the demand for the product the firm sells is $ Q D = 1,800 – 5 P – 0.25 I, where P is the price of a unit of the firm's product and I is the average consumer income of the firm's customers. Currently, P = $80 and  I = $4,000.Based on this information, if you decide to increase the price by 1%, then a) Your total revenue from sales will...
Data concerning Ulwelling Corporation's single product appear below: Per Unit Percent of Sales   Selling price $...
Data concerning Ulwelling Corporation's single product appear below: Per Unit Percent of Sales   Selling price $ 200   100%   Variable expenses 46   23%   Contribution margin $ 154   77% Fixed expenses are $1,043,000 per month. The company is currently selling 9,800 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $11 per unit. In exchange, the sales staff would accept an overall decrease in...
Data concerning Bazin Corporation's single product appear below: Per Unit Percent of Sales Selling price $...
Data concerning Bazin Corporation's single product appear below: Per Unit Percent of Sales Selling price $ 100 100 % Variable expenses 20 20 % Contribution margin $ 80 80 % Fixed expenses are $384,000 per month. The company is currently selling 6,000 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $9 per unit. In exchange, the sales staff would accept a...
Suppose you are a salesperson and your company's CRM forecasts that your quarterly sales will be...
Suppose you are a salesperson and your company's CRM forecasts that your quarterly sales will be substantially under quota. You call your best customers to increase sales, but no one is willing to buy more. Your boss says that it has been a bad quarter for all the salespeople. It's so bad, in fact, that the vice president of sales has authorized a 20 percent discount on new orders. The only stipulation is that customers must take delivery prior to...
?You have developed the following pro forma income statement for your? corporation: Sales $ 45,750,000 Variable...
?You have developed the following pro forma income statement for your? corporation: Sales $ 45,750,000 Variable costs (22,800,000) Revenue before fixed costs $ 22,950,000 Fixed costs (9,200,000) EBIT $ 13,750,000 Interest expense (1,350,000) Earnings before taxes $ 12,400,000 Taxes (50%) (6,200,000) Net income $ 6,200,000 It represents the most recent? year's operations, which ended yesterday. Your supervisor in the? controller's office has just handed you a memorandum asking for written responses to the following?questions: a.??If sales should increase by 25...
Suppose you are a salesperson and your company's CRM forecasts that your quarterly sales will be...
Suppose you are a salesperson and your company's CRM forecasts that your quarterly sales will be substantially under quota. You call your best customers to increase sales, but no one is willing to buy more. Your boss says that it has been a bad quarter for all the salespeople. It's so bad, in fact, that the vice president of sales has authorized a 20 percent discount on new orders. The only stipulation is that customers must take delivery prior to...
1A) You are managing a pharmaceutical company that makes a patent-protected drug. According to your calculations,...
1A) You are managing a pharmaceutical company that makes a patent-protected drug. According to your calculations, at the current level of production the marginal revenue of one unit of the drug is less than the marginal cost of producing that unit. To maximize your profit, should you increase, decrease, or maintain the current level of production? Explain your answer. 1B)Australian yogurt is a new product that is not strained and is made from whole milk, so it is creamier than...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT