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Houpe Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $140 42 $

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Houpe Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margin Per Unit $140 42 $ 98 Percent of Sales 1008 30 709 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 stift) The marketing manager predicts that introducing this solen 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 decrease of $115.300 increase of 5588.700

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