Widget Company Sells Widgets for $20

question 63

Essay

Widget Company sells widgets for $20.00 each.The manufacturing costs, all variable, are $6 each.The company is planning on renting an exhibition booth, for both display and selling purposes, at the annual candy convention.The company's sales manager will earn a vacation bonus if she can earn a target net income of $150,000, for the sales operation at the convention.The convention organizers provide the advertising and guarantee a certain level of traffic, in exchange for 15% of the net income.The 15% surcharge operates like a tax on net income.The company absorbs all of the fixed costs of production for the sales made at the convention.How many widgets does the sales manager have to sell to earn the vacation bonus?

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Definitions:

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The part of a plant that attaches it to the ground or to a support, typically underground, conveying water and nourishment to the rest of the plant.

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The quality of being resistant to change and capable of maintaining a constant condition or staying steady.

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Discipline involves the practice of training oneself or others to obey rules or a code of behavior, using punishment to correct disobedience or to cultivate a habit or skill.

Improve Communication

The process of enhancing the effectiveness and clarity of exchanging information between individuals or groups.