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The lease expense of the building totals $900,000 per year. The company has a month-to-month list and either party can get out of the lease with just one month's notice. The lease expense is the only fixed expense the company has at the moment.
The company employs a staff of 200. This consists of 150 manufacturing employees, 40 non-sales office employees and five sales persons. The manufacturing employees are union employees and therefore earn union scale. The sales persons earn a commission of 30%, which is significantly higher than the industry standard of 5%.
The company has a customer base of about 200 car dealers in the Midwest...
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