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Required information Problem 12-25 (Algo) CVP analysis-what-if questions; breakeven LO 12-7, 12-8, 12-9, 12-10 [The following information applies to the questions displayed below.] Marathon Company

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Required information Problem 12-25 (Algo) CVP analysis-what-if questions; breakeven LO 12-7, 12-8, 12-9, 12-10 [The following information applies to the questions displayed below.] Marathon Company makes and sells a single product. The current selling price is $19 per unit. Variable expenses are $11.4 per unit, and fixed expenses total $52,860 per month. (Uniess otherwise stated, consider each requirement separately) Problem 12-25 (Algo) Part g \& h 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. 9. 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 7,350 units per month. 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 7,100 units per month. h. 1. Assuming that the sales volume of 7,100 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? 2. Which strategy would you recommend? Complete this question by entering your answers in the tabs below. 9-1. Calculate the monthly operating income (or loss) that would result from changing the compensation plan to a saiary of $400 per month, plus a commission of $0.85 per unit, assuming a sales volume of 7,350 units per month. Note: Do not round intermediate calculations. 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 7,100 units per month. Note: Do not round intermediate calculations, Losses should be indicated by a minus sign. h1. Assuming that the sales volume of 7,100 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? Note: Do not round intermediate calculations. Losses should be indicated by a minus sign. h. 1. Assuming that the sales volume of 7,100 units per month achleved in part g could also be achieved by increasing advertising by $1,000 per month instead of changing the sales force compensation plen. What would be the operating income or loss? 2. Which strategy would you recommend? Complete this question by entering your answers in the tabs below. Which strategy would you recommend

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