Short Answer
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 per week and a flat fee of per setup. The software itself costs per unit; the total charge per installation is .
(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 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?
Correct Answer:

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(A) 4 installations
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