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AC71640 company produces and sells a product with the following characteristics: $ $ Selling price Variable expenses Contribution margin Per Unit 232 50 182 $
AC71640 company produces and sells a product with the following characteristics: $ $ Selling price Variable expenses Contribution margin Per Unit 232 50 182 $ The AC71640 company is currently selling 7.200 units per month. Fixed expenses are $888.000 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 $24 per unit. In exchange, the sales staff would accept a decrease in their salaries of $48.000 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 AC71640 company's monthly net operating income of this change? Multiple Choice Increase of $102,720 Increase of $76,456 Increase of $96,560 Increase of $117,528 AX97880 company is a highly automated manufacturer. At an activity level of 6,400 units, the company's total quality control cost equal $221,200. This amount includes equipment lease cost of $62.000 (all fixed) and manual inspection cost of $64.000 (all variable). The remaining $95,200 of the total quality control cost consists of electronic testing (mixed). At an activity level of 8,400 units, electronic testing cost totals $111,200. Assume that the relevant range includes all of the activity levels mentioned in this problem for the AX97880 company. If 7.200 units are projected for the next period, how much would the total expected quality control cost be? Multiple Choice $257,200 o (0) $163.600 $239,200 $235,600
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