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Data concerning Wislocki Corporation's single product appear below: Percontor Per Unit $ 180 Sales selling price Vaniahle eynonsoc Contribution margin $ 144 100% 20% 80%
Data concerning Wislocki Corporation's single product appear below:
Percontor
Per
Unit
$ 180
Sales
selling price
Vaniahle eynonsoc
Contribution margin
$ 144
100%
20%
80%
Fixed expenses are $1,044,000 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 $14 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $110.000 per
month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by 400 units. What should
be the overall effect on the company's monthly net operating income of this change?
(Please explain step by step)
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