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Data for Capitol Suppliers are shown below: The company sells Whiteboard sets to Government and Private schools. Management is considering removing the monthly salaries of
Data for Capitol Suppliers are shown below: The company sells Whiteboard sets to Government and Private schools. Management is considering removing the monthly salaries of its Sales staff, thereby reducing Fixed expenses by 30% per month. The company will pay a sales commission instead to its Sales staff which will increase variable cost per unit by $30. Which one of the following would be the net operating income if the changes were made? Select one: A. $15,000 B. $40,000 C. $17,500 D. $12,500
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