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Data concerning Wislocki Corporation's single product appear below: Selling price Variable expenses Contribution margin Per Unit $ 180 36 $ 144 Percent of Sales 100%
Data concerning Wislocki Corporation's single product appear below:
Selling price
Variable expenses
Contribution margin
Per Unit
$ 180
36
$ 144
Percent of
Sales
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?
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