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Data concerning Curtis Corporation's single product appear below: Per Unit % of Sales Selling price $ 1 3 5 . 0 0 per unit, 1

Data concerning Curtis Corporation's single product appear below:
Per Unit % of Sales
Selling price $135.00 per unit, 100.0% of sales
Variable expenses $83.70 per unit, 62.0% of sales
Contribution margin $51.30 per unit, 38.0% of sales
Fixed expenses are $183,000 per month. The company is currently selling 9,000 units per month.
Required:
The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $15 per unit. In exchange,
the sales staff would accept an overall decrease in their salaries of $90,000 per month. The marketing manager predicts that introducing this sales incentive would increase monthly
sales by 550 units. Show your work!
Detail from above paragraph
Fixed expenses are per month are: $183,000
Current monthly units sales are: 3,800
Marketing manager proposal:
Increase in variable costs (sales commission): $15
Decrease in sales salaries: $90,000
Target impact of proposal:
Unit sales change 550
Required:
a What is the new contribution margin per unit?
b What is the new sales volume?
c What is the new total contribution margin?
d What is the current total contribution margin?
e What is the change in total contribution margin?
f What should be the overall effect on the company's monthly net operating income of this change?

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