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AC75679 company produces and sells a product with the following characteristics: Selling price Variable expenses Contribution margin Per Unit $ 244 56 $ 188 The
AC75679 company produces and sells a product with the following characteristics: Selling price Variable expenses Contribution margin Per Unit $ 244 56 $ 188 The AC75679 company is currently selling 8,400 units per month. Fixed expenses are $876,000 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 $30 per unit. In exchange, the sales staff would accept a decrease in their salaries of $66,000 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 25%. What would be the overall effect on AC75679 company's monthly net operating income of this change? Multiple Choice increase of $133,500 increase of $74,160 increase of $145,800 increase of $207,520
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