A corporation provided the following: Selling price Variable expenses Contribution margin Fixed expenses are $301,000 per month. The company is currently selling 5,000 units per month. The marketing manager wants to use sales commissions as an incentive for the sales staff. He proposed a commission of $16 per unit. The sales staff would accept an overall decrease in their salaries of $68,000 per month due to the new commission program. It has been predicted that this would increase monthly sales by 200 units. What will be the overall effect on the company's monthly net operating income of this change?

A corporation provided the following Fied expenses are $301,000 per month. The company is currently selling 5,000 units per month. The marketing manager wants to use sales commissions as in incentive for the sales staff. He proposed a commisson of $16 per unit. The sales staff would accept an overall decrease in their salories of $68,000 pet month due to the new commission program it has been predicted that this would increase monthly sales by 200 units. What will be the overall eflect on the company's monthly net operating income of this change