This topic contains a solution. Click here to go to the answer

Author Question: The Value of Bonuses Oscar's Outdoor Signage employs salesmen to find new advertisers for existing ... (Read 41 times)

NguyenJ

  • Hero Member
  • *****
  • Posts: 516
The Value of Bonuses Oscar's Outdoor Signage employs salesmen to find new advertisers for existing signs. In an average month, salaried sales staff can keep 80 of 100 signs under contract in a given month. When Oscar experimented with a bonus of 100 for each sign under contract this was increased to 90 of 100 signs. How large must the contribution margin on a sign be to make it profitable to offer the bonuses?

Question 2

A firm currently has 5 workers each paid 15 per hour. If it decides to hire a 6th worker, the hourly wage increases to 18 for all workers. What is the marginal cost of hiring the 6th worker?
 a. 3
  b. 18
  c. 15
  d. 33



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

guyanai

  • Sr. Member
  • ****
  • Posts: 349
Answer to Question 1

Oscar paid 10090= 9,000 in bonuses to a sales staff member and increased the number under contract by 10 . This, comes to 9,000/10 = 900 per additional sign under contract. These bonuses are profitable if the contribution margin on a sign exceeds 900 per month.

Answer to Question 2

d




NguyenJ

  • Member
  • Posts: 516
Reply 2 on: Jul 1, 2018
Wow, this really help


shewald78

  • Member
  • Posts: 340
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

Aspirin may benefit 11 different cancers, including those of the colon, pancreas, lungs, prostate, breasts, and leukemia.

Did you know?

Between 1999 and 2012, American adults with high total cholesterol decreased from 18.3% to 12.9%

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

The first monoclonal antibodies were made exclusively from mouse cells. Some are now fully human, which means they are likely to be safer and may be more effective than older monoclonal antibodies.

Did you know?

The horizontal fraction bar was introduced by the Arabs.

For a complete list of videos, visit our video library