answered Marked out of 6.00 ADAM Corporation currently produces and sells a single product. Data concerning that product appear below Per Unit Percentage $200 100% Selling price 30% Variable expenses Flag question Contribution margin 60 $140 70% Fixed expenses are $280,000 per month. The company is currently selling 7000 units per month Proposed situation: The marketing manager would like to introduce sales commissions as an incentive for the sales at the marketing manager has proposed adding a commission (variable cost) of $10 per unit. In exchange, the sins staff would accept an overall decrease in their salaries of $33,000 per month. The marketing manager pedics that introducing this sales incentive would increase monthly sales by 200 units. Required: 1) Compare the break-even in units under both the existing and proposed situation 2) Compare the margin of safety in dollars (level of sales in dollars less break-even sales in dollary under both the existing and proposed situation. 3) Compare the monthly net operating income under both the existing and proposed situation 4) Based on your previous comparison, which situation will you recommend (existing or proposed? / Paragraph MacBook Air * 57 " .. * FS 009 & 7 V 8 9 10 0 DOO FA