Transcribed Image Text: Company XYZ is specialized in producing and selling smart watches. The company currently has two
products and is planning to improve it profits in the coming years. The company is thinking of
introducing a sales commission to encourage its sales people to make more sales and improve
company’s profitability. When designing the sales commission the company should base the sales
commission on:
O a. The color of the product
O b. The number of employees
O c. None of the given answers
O d. The contribution margin
O e. The selling price
on
The variable cost ratio is calculated as:
O a.
The selling price per unit / variable cost per unit
ved
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