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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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