QUESTION 4 Total $1,200,000 Per unit $1,200 $480 Account Sales (1,000 Paintings) Variable expenses Contribution Margin Fixed expenses Net operating income $480,000 $720,000 $720 $600,000 $120,000 Michelangelo, the VP of Sales and Deals has recently suggested that paying salespersons with a sales commission of $200 per unit sold, rather than the flat salaries of $100,000 a month would increase his firms unit sales (currently 1,000) by 20%. Based on the table above, what effect would this action have on his firm's net operating income? A. Increase of $4,000 B. Increase of $14,000 C. Decrease of $14,000 D. No effect E. Decrease of $4,000