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Only answer needed, will provide a thumbs up Empany produces and sells a product with the following characteristics: Selling price Variable expenses Contribution margin Per
Only answer needed, will provide a thumbs up
Empany produces and sells a product with the following characteristics: Selling price Variable expenses Contribution margin Per Unit $ 232 50 $ 182 Th atinpany is currently selling 7,200 units per month. Fixed expenses are $888,000 per month. The sales manager would like to introduce commissions as an incentive for the sales staff. The sales manager has proposed a commission of $24 per unit. In exchange, the sales staff would accept a decrease in their salaries of $48,000 per month. (This is the company's savings for the entire sales staff.) The manager predicts that introducing this sales incentive would increase monthly unit sales by 20%. What would be the overall effect on company's monthly net operating income of this change? O O increase of $117,528 O increase of $96,560 increase of $102,720 O Increase of $76,456 Step by Step Solution
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