Monterey Co. makes and sells a single product. The current selling price is $14 per unit. Variable expenses are $8.4 per unit, and fixed expenses total $29,400 per month. (Unless otherwise stated, consider each requirement separately.)

f. Calculate the monthly operating income (or loss) that would result from a $1 per unit price increase and a $6,000 per month increase in advertising expenses, both relative to the original data. Assume a sales volume of 5,250 units per month. (Do not round intermediate calculations.)

Management is considering a change in the sales force compensation plan. Currently each of the firm's two salespeople is paid a salary of $2,500 per month.

g-1. Calculate the monthly operating income (or loss) that would result from changing the compensation plan to a salary of $400 per month, plus a commission of $0.85 per unit, assuming a sales volume of 5,250 units per month. (Do not round intermediate calculations.)

$(document).ready(function(){ $('iframe[name="Q_13252704154516922_new"]').attr('src','/ext/common/accountingtool/1.0/atinit.html?Q_13252704154516922_new'); }); g-2. Calculate the monthly operating income (or loss) that would result from changing the compensation plan to a salary of $400 per month, plus a commission of $0.85 per unit, assuming a sales volume of 6,050 units per month. (Do not round intermediate calculations. Losses should be indicated by a minus sign.)

$(document).ready(function(){ $('iframe[name="Q_13252704154516922_new1"]').attr('src','/ext/common/accountingtool/1.0/atinit.html?Q_13252704154516922_new1'); }); h-1. Assuming that the sales volume of 6,050 units per month achieved in part g could also be achieved by increasing advertising by $1,000 per month instead of changing the sales force compensation plan. What would be the operating income or loss? (Do not round intermediate calculations. Losses should be indicated by a minus sign.)