1 TB Problem Qu. 5-234 Data concerning Wislocki ... 1 Data concerning Wislocki Corporation's single product appear below: 5 points Selling price Variable expenses Contribution margin Per Unit $200 46 $154 Percent of Sales 1000 234 778 02:17:12 Book Fixed expenses are $1,043,000 per month. The company is currently selling 9,800 units per month. Required: The marketing manager would like to introduce sales commissions as an incentive for the sales staff The marketing manager has proposed a commission of $11 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $103,000 per month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by 320 units. What should be the overall effect on the company's monthly net operating income of this change? Change in net operating income 2 Exercise 5-17 Break-Even and Target Profit Analysis (LO5-4, L05-5, LO5-6) 14 points 02:16:46 Outback Outfitters sells recreational equipment. One of the company's products, a smal camp stove, sells for $120 per unit. Variable expenses are $84 per stove, and fixed expenses associated with the stove total $147,600 per month. Required: 1. What is the break-even point in unit sales and in dollar sales? 2. If the variable expenses per stove increase as a percentage of the selling price, will it result in a higher or a lower break-even point? Assume that the fixed expenses remain unchanged.) 3. At present, the company is selling 8,000 stoves per month. The sales manager is convinced that a 10% reduction in the selling price would result in a 25% Increase in monthly sales of stoves. Prepare two contribution format income statements, one under present operating conditions, and one as operations would appear after the proposed changes. 4. Refer to the data in Required 3. How many stoves would have to be sold at the new selling price to attain a target profit of $80,000 per month? eBook Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 What is the break even point in unit sales and in dollar sales