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AC56462 company produces and sells a product with the following characteristics: Per Unit 248 Selling price Variable expenses Contribution margin 58 $ 190 The AC56462
AC56462 company produces and sells a product with the following characteristics: Per Unit 248 Selling price Variable expenses Contribution margin 58 $ 190 The AC56462 company is currently selling 8,800 units per month. Fixed expenses are $872,000 per month. The sales manager would like to introduce commissions as an incentive for the sales staff. The sales manager has proposed a commission of $32 per unit. In exchange, the sales staff would accept a decrease in their salaries of $72,000 per month. (This is the company's savings for the entire sales staff.) The manager predicts that introducing this sales incentive would increase monthly unit sales by 30%. What would be the overall effect on AC56462 company's monthly net operating income of this change
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