Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

Pittman company is a small but growing

29/12/2020 Client: saad24vbs Deadline: 10 Days

Pittman company is a small but growing manufacturer of telecommunications equipment. The company has no sales force of its own; rather, it relies completely on independent sales agents to markets its products. These agents are paid a sales commission of 15% for all items sold. Barbara Cheney, Pittman's controller, has just prepared the company's budgeted income statement for next year. The statement follows:


Sales..........................................$16,000,000


Manufacturing expenses:


variable....................$7,200,000


fixed overhead...........2,340,000...........$9,540,000


Gross Margin........................................6,460,000


Selling and Admin expenses


commissions to agents...2,400,000


fixed marketing expenses..120,00


Fixed admin expenses........1,800,000......4,320,000


Net operating income..............................2,140,000


Fixed interest expenses............................540,000


Income before income taxes......................1,600,000


incomes taxes (30%)................................480,000


Net income..............................................1,120,000




This statement was made using agents 15% commission rate, but next year will increase to 20%. Several companies they know about pay a 7.5% commission to their own salespeople, along with a small salary. Of course, they have to handle promotional cost, too. They figure their fixed expenses would increase by $2,400,000 per year, but that would be more than offset by the $3,200,000 (20% X $16,000,000) that they would avoid on agents' commissions.




The break down of the $2,400,000 cost follows:


Salaries


Sales manager....................$100,000


Salespersons.......................600,000


Travel and entertainment........400,000


Advertising............................1,300,000


Total......................................$2,400,000




They save $75,000 a year because that's what they are having to pay the auditing firm now to check out the agents' reports. So administration expenses would be less.




1.) Compute pittman company's break-even point in dollar sales for next year assuming:


a. the agents' commission rate remains unchanged at 15%


b. the agents' commission rate is increased to 20%.


c. the company employs its own sales force


2.) assume that pittman company decided to continue selling through agents and pays the 20% commission rate. Determine the volume of sales that would be required to generate the same net income as contained in the budgeted income statement for next year.


3.)Determine the volume of sales at which net income would be equal regardless of whether pittman company sells through agents (at 20% commission rate) or employs its own sales force.


4.) Compute the degree of operating leverage that the company would expect to have on December 31 at the end of next year assuming:


a. the agents' commission rate remains unchanged at 15%


b. the agents' commission rate is increased at 20%


c. the company employs its own sales force


-use income BEFORE income taxes in your operating leverage computation


5.) Based on the data in (1) through (4) above, make a recommendation as to whether the company should continue to use sales agents (at 20% commission rate) or employ its own sales force. Give reasons for your answer




 

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Homework Guru
Helping Hand
Best Coursework Help
University Coursework Help
Writer Writer Name Offer Chat
Homework Guru

ONLINE

Homework Guru

Hi dear, I am ready to do your homework in a reasonable price and in a timely manner.

$112 Chat With Writer
Helping Hand

ONLINE

Helping Hand

I am an Academic writer with 10 years of experience. As an Academic writer, my aim is to generate unique content without Plagiarism as per the client’s requirements.

$110 Chat With Writer
Best Coursework Help

ONLINE

Best Coursework Help

I am an Academic writer with 10 years of experience. As an Academic writer, my aim is to generate unique content without Plagiarism as per the client’s requirements.

$110 Chat With Writer
University Coursework Help

ONLINE

University Coursework Help

Hi dear, I am ready to do your homework in a reasonable price.

$112 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

Community sustainability proposal powerpoint - Simquick examples - What is the equity multiplier for - Nr 511 week 4 midterm - Anthology of chinese literature owen pdf - Example of prose in romeo and juliet - Peter pan pirate scene - Common divine role that recurs in world mythology - Elementary Statistics - If i ran the circus activities - Article Review 1 Cognitive Therapy from the Inside - Chapter 3 business law and ethics part 1 content review - Asa24 login - Types of fingerprint patterns - The magic hat mem fox activities - Nabertherm more than heat 30 3000 c manual - Louder than a bomb documentary questions answers - Maximum probable yearly aggregate loss - 12 angry men audiobook - Axis singular or plural - Unit 4 Writing 1 & 2 - Menlo company distributes a single product - 4.3 Online Research Discussion - Her three days short story - Www skillcard org uk - Ethics in policing administration - One discussion and 2 replies - Heat enthalpy of reaction and calorimetry lab report - Safety and Quality Improvement in Professional Nursing Practice - Los mineros documentary - 2015 vce methods exam 2 - Of these four words, which one is most likely to have a negative flavor or connotation? - Research in nursing 2-3 pages - Anti natural log calculator - Nursing 110 - Mcintosh and sons dalby - The global community bank under terms - Project 1: Excel (Advanced Application Software) - Deliverable 5 - Using Ethics in Visual Communication - Business ethics - How to write your recovery story - Vrin model example - System Analysis - Richard nixon checkers speech rhetorical analysis - Balance sheet approach expatriate compensation - The globalization of world politics third edition - Assign 1 - Process Mapping of a Quality Improvement Initiative - Transport to easter show - Pig unstructured data examples - Human resource management byars and rue 11th edition pdf - Week 4 BIO2071 Microbiology Lab Project - Strathaven nursing home rosetta - 100% Tested safe +2785179056 @ Reliable Abortion Clinics & Pills DURBAN DURBAN NORTH STANGER PINETOWN ESTCOURT - Great clarendon street oxford - Adam and eve australian movie - Bolman and deal apa citation - Dr ruth cullity reviews - Willie marshay greer - Jk rowling's 2008 harvard commencement speech - Learning theory of career counseling - Del richardson good rockin tonight - 2m2 resistor color code - Melting point determination lab report - I need a discussion done and a respond to 2 other classmate for my Recruit, develop, reward and retain - Classic of poetry fishhawk - 4738 pacific highway kew - What role does creativity play in the bat poet - Qqi assessment and standards - Margaret newman nursing theory - 0.96 repeating as a fraction in simplest form - Cisco imc supervisor download - Badminton skills and techniques - Synthesizing the Concepts - Which of the following statements is true of missionary salespeople - Table 2 generation data produced by monohybrid crosses - The wolf's postscript to little red riding hood tone - Single bonds double bonds and triple bonds - Dr roto hog tiller parts - Converging diverging nozzle back pressure - Exp 105 week 2 chapter quiz - Chapter 5 human resource planning and job analysis - Client related risk factors - Technology acceptance model(TAM - 1229 fern dr pocono summit pa 18346 - Hey buddy can you spare a dime worksheet answers - Understanding black american aspects in hip hop cinema - Cultural theories and models - American bureau of shipping abs singapore - Antigone quotes with line numbers - Which of the following statements is untrue regarding cold canvassing - Business intelligence project plan template - Bsbpmg522a undertake project work answers - Greasy lake by tc boyle full text - Pbs illusion of race - A pair of star crossed lovers technique - Australian cybercrime online reporting network - Utilizing crime analysis theories - Grow management consultants - Leichhardt high school uniform