Luxus,IncEmploys 45 Sales Personnel to Market Its Line of Luxury

Multiple Choice

Luxus,Inc.employs 45 sales personnel to market its line of luxury automobiles.The average car sells for $23,000,and a 6 percent commission is paid to the salesperson.
Luxus Motors is considering a change to the commission arrangement where the company would pay each salesperson a salary of $2,000 per month plus a commission of 2 percent of the sales made by that salesperson.The amount of total monthly car sales at which Luxus Motors would be indifferent as to which plan to select is:

A) $2,250,000.
B) $3,000,000.
C) $1,500,000.
D) $1,250,000.