Assume the following information: Sales Variable expenses Contribution margin Fixed expenses Net operating income Multiple Choice If the company decides to reduce sales salaries by $5,000 and replace this form of compensation with a sales commission of 2.5%, then the new unit sales needed to breakeven would be closest to: 2,609 units. Per Unit $ 40 16 180,000 $ 24 60,000 $ 120,000 2 392 units Amount $ 300,000 120,000

Assume the following information: If the company decides to reduce sales salaries by $5,000 and replace this form of compensation with a sales commission of 2.5%, then the new unit sales needed to breakeven would be closest to: Multiple Choice 2,609 units. 2292 units