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A Company Sets Up Elderly Clients for General Purpose Household $600.00\$ 600.00

Question 29

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A company sets up elderly clients for general purpose household software, such as Quicken, for a flat fee through its agents. Agents are paid a retention fee of $600.00\$ 600.00 per week and a flat fee of $100\$ 100 per setup. The software itself costs $100.00\$ 100.00 per unit; the total charge per installation is $350\$ 350 .
(A) What sales volume per week will make the firm break even?
(B) How many installations per week should be targeted if the target profit is $3900.00\$ 3900.00 per week?
(C) If Joe Jackson, a Detroit-based salesman, installs the software for 500 clients during the first week of March 2006, what will be his commission for that week?
(D) If Joe Jackson, a Detroit-based salesman installs the software for 500 clients during the first week of March 2006, what will the firm earn (net contribution) through its association with Joe Jackson?

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(A) 4 installations
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