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A Corporation produces and sells a single product. Data concerning that product appear below. Selling Price Variable Expenses Contribution Margin Per Unit $400 280

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A Corporation produces and sells a single product. Data concerning that product appear below. Selling Price Variable Expenses Contribution Margin Per Unit $400 280 120 Percent of Sales 100% 70% 30% Fixed expenses are $320,000 per month. The company is currently selling 9,000 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 $16 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $68,000 per month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by 200 units. What should be the overall effect on the company's monthly net operating income of this change? a. The original NOI= b. The new NOI= c. The change in NOI= (Note: enter the change of NOI as a positive number regardless of the direction up or down) d. Accept or Reject the change. Check the correct choice. O Accept the change O Reject the change

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