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A salesperson in a recurring revenue firm is paid the equivalent of 2 . 5 months' sales revenue for each new customer added. The fee

A salesperson in a recurring revenue firm is paid the equivalent of 2.5 months' sales revenue for each new customer added. The fee charge to the customer for the service is $120 per month, and providing the service costs the company $50 per month per customer. It costs $25 to initially hook up each new customer. What would be the effect on this month's expenses if the salesperson added fifty-five new customers this month?
Group of answer choices
$13,125
$4,125
$16,500
No impact because the salesperson is bringing in sales not expenses.
$20,625

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