Monterey Co. makes and sells a single product. The current selling price is $16 per unit. Variable expenses are $9.6 per unit, and fixed expenses total $31,640 per month. (Unless otherwise stated, consider each requirement separately.)

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 5,100 units per month. (Do not round your intermediate calculations.)

opertaing income:

Required information

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 $0.75 per unit, assuming a sales volume of 5,100 units per month. (Do not round your intermediate calculations. Round your final answer to nearest whole dollar.)
	operating income:

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 $0.75 per unit, assuming a sales volume of 6,150 units per month. (Do not round your intermediate calculations. Round your final answer to nearest whole dollar.)

operating income:

h.1	Assuming that the sales volume of 6,150 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 your intermediate calculations.)

operating income: