AirPac Packaging Systems Are Used to Create Airtight Packages for Meat

question 59

Essay

AirPac packaging systems are used to create airtight packages for meat and cheese products. The AirPac system is more expensive to use but guarantee to cut packaging reject costs in half. The cost for the AirPac system is $15,300. The purchasing company experienced a net savings of $5,100 during its first year of usage. Calculate the return on investment (ROI).

---

Definitions:

Straight Commission

A compensation method where pay is based solely on sales performance, typically a percentage of the sales generated.

Combination Approach

A strategy that combines various methods, techniques, or practices to achieve a more effective outcome or solution.

Straight Salary

A fixed regular payment made by an employer to an employee, regardless of the employee's performance or hours worked.

Exclusive Distribution

A distribution strategy where a supplier grants exclusive rights to a single wholesaler or retailer to sell its products in a specific territory.