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Carol Mauldin, owner of Mauldin Mercantile Exchange, is considering changing to a sales commission pay scale for her employees. Currently, her 20 salespeople are
Carol Mauldin, owner of Mauldin Mercantile Exchange, is considering changing to a sales commission pay scale for her employees. Currently, her 20 salespeople are each paid a flat salary of $45,000. She believes that by introducing sales commission on certain products, she can increase sales volume and operating income. Carol has provided you with two data files: all sales transactions from the past year and a product list that contains sales price and variable cost for each item sold by the company. Click here to view the Excel dataset. Answer the below questions. (a) Your answer has been saved. See score details after the due date. Calculate Mauldin's current contribution margin using the sales data from the most current year. Contribution margin 10250 (b) eTextbook and Media Attempts: 1 of 1 used Carol believes that reducing sales salaries to $30,000 per salesperson and adding a 5% commission (based on sales price) on sales of all products whose product number begins with a "2" will result in an 8% increase in sales volume for those products. What will the new total contribution margin be if this commission is implemented? What is the expected effect on operating income if this commission is implemented? (Round answers to 2 decimal places, e.g. 52.75.) New total contribution margin Net effect on operating income
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