21. Walton Widgets manufactures a product that sells for $40 per unit. Walton incurs a variable cost per unit of $24 and $1,400,000 in total fixed costs to produce this product. It is currently selling 92,000 units. Should Walton Widgets give a commission to its salesmen based on 8% of sales, if it will decrease fixed costs by $300,000 and increase sales volume 12%? A. No because net operating income decreases by $146,912 B. Yes because net operating income increases by $218,912 C. Yes because net operating income increases by $146,912 D. No because net operating income decreases by $218,912

21. Walton Widgets manufactures a product that sells for $40 per unit. Walton incurs a variable cost per unit of $24 and $1,400,000 in total fixed costs to produce this product. It is currently selling 92,000 units. Should Walton Widgets give a commission to its salesmen based on 8% of sales, if it will decrease fixed costs by $300,000 and increase sales volume 12% ? A. No because net operating income decreases by $146,912 B. Yes because net operating income increases by $218,912 C. Yes because net operating income increases by $146,912 D. No because net operating income decreases by $218,912