The Value of Bonuses
Oscar's Outdoor Signage employs salesmen to find new advertisers for existing signs.In an average month,salaried sales staff can keep 80 of 100 signs under contract in a given month.When Oscar experimented with a bonus of $100 for each sign under contract this was increased to 90 of 100 signs.How large must the contribution margin on a sign be to make it profitable to offer the bonuses?

Question

​The Value of Bonuses
Oscar's Outdoor Signage employs salesmen to find new advertisers for existing signs.In an average month,salaried sales staff can keep 80 of 100 signs under contract in a given month.When Oscar experimented with a bonus of $100 for each sign under contract this was increased to 90 of 100 signs.How large must the contribution margin on a sign be to make it profitable to offer the bonuses?

Quizplus · Accepted Answer

The Answer of ​The Value of Bonuses
Oscar's Outdoor Signage employs salesmen to find new advertisers for existing signs.In an average month,salaried sales staff can keep 80 of 100 signs under contract in a given month.When Oscar experimented with a bonus of $100 for each sign under contract this was increased to 90 of 100 signs.How large must the contribution margin on a sign be to make it profitable to offer the bonuses?

​The Value of Bonuses

The Value of Bonuses