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:

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The act of refraining from engaging in certain behaviors or consuming certain substances, often related to health improvement or maintaining physical wellbeing.

Controlled Drinking

A harm reduction strategy that involves individuals managing their alcohol intake to avoid excessive consumption.

Naltrexone

A medication used to manage alcohol and opioid dependence by reducing cravings and feelings of pleasure associated with substance use.

Acamprosate

A medication used in the treatment of alcohol dependence, helping to maintain abstinence by stabilizing chemical balance in the brain.