Glade, Inc. is trying to decide whether to increase the commission-based pay of its salespeople. Currently, each of its five salespeople earns a 11% commission on the units they sell for $100 each, plus a fixed salary of $40,300. Glade hopes that by increasing commissions to 16% and decreasing each salespersons salary to $21,700, sales will increase because salespeople will be more motivated. Currently, sales are 20,000 units. Glades other fixed costs, NOT including the salespeoples salaries, total $586,000. Glades other variable costs, NOT including commissions, total $18 per unit.

a) If sales increase by 10,000 units, what will profit be under the new plan?

b) At what sales level would Glade be indifferent between the lower-commission plan and the higher-commission plan?