Data concerning Wislocki Corporation's single product appear below:

Fixed expenses are $$1,040,000$ per month. The company is currently selling $9,900$ 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 $$14$ per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $$106,000$ per

month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by $450$ units. What should

be the overall effect on the company's monthly net operating income of this change?Data concerning Wislocki Corporation's single product appear below:

Per Unit Percent of Sales

Selling price $ $200100\%$

Variable expenses $5226\%$

Contribution margin $ $14874\%$

Fixed expenses are $$1,040,000$ per month. The company is currently selling $9,900$ 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 $$14$ per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $$106,000$ per month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by $450$ units. What should be the overall effect on the company's monthly net operating income of this change?