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ABT Company produces and sells a single product. The company's revenues and costs data for the most recent month are given below: Required: a) Compute
ABT Company produces and sells a single product. The company's revenues and costs data for the most recent month are given below: Required: a) Compute the company's margin of safety percentage AF sallesCalesBEP b) If sales are increased by 30%, net operating income will increase by what percentage? a) What dollar sales must the company achieve in order to earn a net income of $50,000 per month? Assume 20% tax rate) c) The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $3 per unit. In exchange, the sales staff would accept a decrease in their salaries of $16,000 per month The marketing manager predicts that introducing this sales incentive would increase monthly sales by 10%, What should be the overall effect on the company's monthly ne operating income of this change
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