Houpe Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $ 140 42 Percent of Sales 100% 30% 70% $ 98 Fixed expenses are $490,000 per month. The company is currently selling 6,000 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $11 per unit. In exchange, the sales staff would accept a decrease in their salaries of $58,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 100 units. What should be the overall effect on the company's monthly net operating income of this change? Multiple Choice increase of $700 increase of $56,900 Remmel Corporation has provided the following contribution format income statement. Assume that the following information is within the relevant range. Sales (6,000 units) Variable expenses Contribution margin Fixed expenses Net operating income $ 300,000 240,000 60,000 59,000 $ 1,000 If the selling price increases by $3 per unit and the sales volume decreases by 400 units, the net operating income would be closest to: Multiple Choice $19,000 $16,800 1 onn