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! Required information Problem 12-25 (Static) CVP analysis-what-if questions; breakeven LO 7, 8, 9, 10 (The following information applies to the questions displayed below.) Monterey
! Required information Problem 12-25 (Static) CVP analysis-what-if questions; breakeven LO 7, 8, 9, 10 (The following information applies to the questions displayed below.) Monterey Co. makes and sells a single product. The current selling price is $15 per unit. Variable expenses are $9 per unit, and fixed expenses total $27,000 per month. (Unless otherwise stated, consider each requirement separately.) Problem 12-25 (Static) 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. 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 $0.80 per unit, assuming a sales volume of 5,400 units per month. Operating income Required information 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 $0.80 per unit, assuming a sales volume of 6,000 units per month. Operating income h-1. Assuming that the sales volume of 6,000 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? Operating income
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