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Data concerning Bazin Corporation's single product appear below: 80% Per Unit Percent of Sales Selling price $ 100 100% Variable expenses 20 20% Contribution margin

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Data concerning Bazin Corporation's single product appear below: 80% Per Unit Percent of Sales Selling price $ 100 100% Variable expenses 20 20% Contribution margin $ 80 Fixed expenses are $384,000 per month. The company is currently selling 6,000 units per month The marketing manager would like to introduce sales commissions as an incentive for the sales statt. The marketing manager has proposed a commission of $9 per unit. In exchange, the sales staff would accept a decrease in their salaries of $46,000 per month. (This is the company's savings for the entire sales staff) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 500 units. What should be the overall effect on the company's monthly net operating income of this change? increase of $27.500 Increase of $507,500 increase of $41,500 decrease of $64.500 Gayne Corporation's contribution margin ratio is 12% and its fixed monthly expenses are $84,000. the company's sales for a month are $738,000, what is the best estimate of the company's net operating Income? Assume that the fived monthly expenses do not change

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