AC68174 company produces and sells a product with the following characteristics:

	Per Unit
Selling price	$	236
Variable expenses		52
Contribution margin	$	184

The AC68174 company is currently selling 7,600 units per month. Fixed expenses are $884,000 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 $26 per unit. In exchange, the sales staff would accept a decrease in their salaries of $54,000 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 20%. What would be the overall effect on AC68174 company's monthly net operating income of this change?

Multiple Choice

A) increase of $117,528

B) increase of $88,800

C) increase of $96,560

D) increase of $110,232