Salmon Co Is Deciding Between Two Compensation Plans

question 44

Multiple Choice

Salmon Co. is deciding between two compensation plans. In Plan A, salaries are $100,000 and the commission is $2 per unit. In Plan B, salaries are $40,000 and the commission is $4 per unit.
At what level of sales, in units, is Salmon indifferent between the two compensation plans?

• A) 30,000
• B) 20,000
• C) 10,000
• D) Cannot be determined

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Definitions:

Abusive Behavior

Actions that intentionally harm or control another person, often manifesting as physical, emotional, or psychological abuse.

Release from Liability

A legal document that absolves one party from responsibility for any injuries or damages suffered by another party.

Organizational Announcements

Official messages distributed to members within an organization, often related to policy changes, new hires, promotions, or other significant updates.

Negative

Referring to something harmful, undesirable, or expressing disapproval or pessimism.