JJ Motors Inc

question 39

Multiple Choice

JJ Motors Inc.employs 45 sales personnel to market their line of luxury automobiles.The average car sells for $23,000,and a 6 percent commission is paid to the salesperson.JJ Motors is considering a change to the commission arrangement where the company would pay each salesperson a salary of $2,000 per month plus a commission of 2 percent of the sales made by that salesperson.The amount of total monthly car sales at which JJ Motors would be indifferent as to which plan to select is

• A)$2,250,000.
• B)$3,000,000.
• C)$1,500,000.
• D)$1,250,000.
• E)$4,500,000.

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