Two months ago, the owner of a car dealership (and a current football star) significantly changed his sales manager’s compensation plan. under the old plan, the manager was paid a salary of $6,000 per month; under the new plan, she receives 2 percent of the sales price of each car sold. during the past two months, the number of cars sold increased by 40 percent, but the dealership’s margins (and profits) significantly declined. according to the sales manager, "consumers are driving harder bargains and i have had to authorize significantly lower prices to remain competitive." what advice would you give the owner of the dealership?

Miller company’s total sales are $171,000. the company’s direct labor cost is $20,520, which represents 30% of its total conversion cost and 40% of its total prime cost. its total selling and administrative expense is $25,650 and its only variable selling and administrative expense is a sales commission of 5% of sales. the company maintains no beginning or ending inventories and its manufacturing overhead costs are entirely fixed costs. required: 1. what is the total manufacturing overhead cost? 2. what is the total direct materials cost? 3. what is the total manufacturing cost? 4. what is the total variable selling and administrative cost? 5. what is the total variable cost? 6. what is the total fixed cost? 7. what is the total contribution margin?