A budgeted income statement for the two options paying 20


Prepare a report (no more than 10-pages) for Caitlyn Chow that addresses the following:

a. A budgeted income statement for the two options: paying 20% commission to sales agents and hiring own salespeople;

b. Breakeven point for the above two options;

c. Level of indifference between the above two options;

d. Recommendation of preferred option;

e. Determine when BPM-201 should be introduced, based solely on financial considerations;

f. Factors that BPM should consider, apart from financial, when deciding on launch date;

g. Whether to accept the local government's offer for Instrulite;

h. What maximum price to pay for the outside supplier of Penlight Division for Instrulite; and,

i. What factors to consider apart from price when deciding whether to outsource?

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Managerial Accounting: A budgeted income statement for the two options paying 20
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