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

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Data concerning Bazin Corporation's single product appear below: Selling price Variable expenses Contribution margin Per Unit $ 100 20 $ 80 Percentat Sales 100% 20% 80% Fixed expenses are $384,000 per month. The company is currently selling 6,000 units per month. The marketing ma commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $9 per unit accept a decrease in their salaries of $46,000 per month. (This is the company's savings for the entire sales staff.) T introducing this sales incentive would increase monthly sales by 500 units. What should be the overall effect on the income of this change? Multiple Choice increase of $507,500 O decrease of $64,500 Percent of Sales 100$ 205 80$ Per Unit Selling price $ 100 Variable expenses 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 staff. 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. Whit should be the overall effect on the company's monthly net operating Income of this change? Multiple Choice O Increase of $507,500 decrease of $64,500 Increase of $507,500 decrease of $64,500 Increase of $41,500 Increase of $27,500

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