Data concerning UISG Incorporation is well known in Greater Bay area. It recently plans to review its operation and financial performance of its single product appear below: Selling price $195, Variable cost $39. Fixed expenses are $650,000 per month. The company is currently selling 8,000 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 $12 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $79,000 per month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by 300 units.

Question: Calculate overall effect on the company's monthly net operating income of this change. Will you recommend adopting the proposal, why and why not? Show the work.