The fixed costs of Western, Ltd. are $426,000 and the total variable costs for its only product are 30% of the sales price, which is $160. Western currently sells 7,000 units per month and is looking to sell more. Consider each of the following independently: Part A The marketing manager is considering lowering base salaries of salespeople by a collective amount of $36,000 per month while increasing the sales commission by $10 per unit. He believes this will increase monthly sales by 250 units. If so, what would the effect of this change in compensation have on monthly income? Decrease of $ 8000 Part B Management believes monthly sales can be increased by 770 units if additional quality control steps are taken. These steps would mean an increased variable cost per unit of $8. What is the expected effect on the company's monthly income of adding these additional quality control steps? Increase by $24,080 Part C The marketing manager thinks sales are too low in The Northern Region and suggests that sales there would be increased by 140 units per month if an additional $5,000 per month was spent advertising there. What should be the effect on monthly income if this additional advertising is done? Increase by $10,680 Increase by $791,637 Increase by $7,637 Increase by $794,680 Next page