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Duke Enterprises serves both residential and commercial clients. Albert sold 8 0 , 0 0 0 units of their product in the Commercial sector and

Duke Enterprises serves both residential and commercial clients. Albert sold 80,000 units of their product in the Commercial sector and 25,000 units of their product in the Residential sector. Annual financial information for Albert is as follows:
Sales Revenues: Commercial = $800,000, Residential = $500,000 Total = $1,300,000
Variable Costs: Commercial = $200,000, Residential = $125,000 Total = $325,000
Contribution Margin: Commercial = $600,000, Residential = $375,000 Total = $975,000
Fixed Costs = $300,000
Operating Profit = $675,000
2. If Duke increases Sales by 10%, reduces fixed sales salaries by $50,000 and pays commissions of $1.00 for every unit sold; what will the new operating profit be?

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