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Data concerning Lemelin Corporation's single product appear below: Selling price Variable expenses Contribution margin Per Unit $ 230 115 Percent of Sales 100% 50% 50%

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Data concerning Lemelin Corporation's single product appear below: Selling price Variable expenses Contribution margin Per Unit $ 230 115 Percent of Sales 100% 50% 50% $115 The company is currently selling 7,000 units per month. Fixed expenses are $581,000 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 $20 per upit. In exchange, the sales staff would accept a decrease in their salaries of $113,000 per month. (Inis is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 300 units. What should be the overall effect on the company's monthly net operating income of this change? Multiple Choice O increase of $107.000 increase of $806,500 O increase of $1,500 decrease of $224,500

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