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A manufacturing corporation provides the following data: Fixed expersthe s $ 9 9 1 , 0 0 0 per month. The company is currently selling
A manufacturing corporation provides the following data:
Fixed expersthe s $ per month. The company is currently selling units per month. The marketing manager would like to introduce
ofommissions as an incentive for the sales staff. The marketing manager has proposed a commission of $ per unit. In exchange, the sales staff
would accept a decrease in their salaries of $ per month. This is the company's savings for the entire sales staff. The marketing manager.
oredicts that introducing this sales incentive would increase monthly sales by units. What should be the overall effect on the company's monthly
net operating income of this change?
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