Pellman Inc., which produces a single product, has provided the following data for its most recent month of operations: Number of units produced. Variable costs per unit: Direct materials. 1,000 $12 Direct labor.. Variable manufacturing overhcad. Variable selling and administrative expense.. Fixed costs Fixed manufacturing overhead... Fixed selling and administrative expens.. $13 $7 $8 $40,000 $11,000 There were no beginning or ending inventories. The unit product cost under variable costing was: $33 $32 $72 $40 Laro Corporation produces and sells a single product with the following characteristics: Per Unit Percent of Sales $150 75 $75 Selling price.. Variable expenses. Contribution margin..... 100% 50% 50% The company is currently selling 5,000 units per month. Fixed expenses are $302,000 per month. Consider each of the following questions independently. This question is to be considered independently of all other questions relating to Laro Corporation. Refer to the original data when answering this question The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed exchange, the sales staff would accept a decrease in their salaries of $40,000 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? a commission of $9 per unit. In Increase of $376,600 Increase of $1,600 Decrease of $78,400 Increase of $39,100