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Required Information [The following information applies to the questions displayed below] Monterey Co. makes and sells a single product. The current selling price is
Required Information [The following information applies to the questions displayed below] Monterey Co. makes and sells a single product. The current selling price is $18 per unit. Variable expenses are $10.8 per unit, and fixed expenses total $35,000 per month. (Unless otherwise stated, consider each requirement separately) 1-1. Calculate the monthly operating Income (or loss) that would result from a $1 per unit price increase and a $6,000 per month Increase in advertising expenses, both relative to the original data. Assume a sales volume of 5,000 units per month. (Do not round Intermediate calculations.) Operating loss $ (1,000) Required Information [The following information applies to the questions displayed below.] Monterey Co. makes and sells a single product. The current selling price is $18 per unit Variable expenses are $10.8 per unit, and fixed expenses total $35,000 per month. (Unless otherwise stated, consider each requirement separately) 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 $0.85 per unit, assuming a sales volume of 5,000 units per month. (Do not round Intermediate calculations.) Answer is complete but not entirely correct. Operating income $ 4,300X 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 6,400 units per month. (Do not round Intermediate calculations. Losses should be Indicated by a minus sign.) Answer is complete but not entirely correct. Operating income $ 4,400 X
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