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

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 12EA: Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a...

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Markson and Sons leases a copy machine with terms that include a fixed fee each month of $500 plus a charge for each copy made. The company uses the high-low method to analyze costs. If Markson paid $360 for 5,000 copies and $280 for 3,000 copies, how much would Markson pay if it made 7,500 copies?
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