Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $12

The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $12 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $108,000 per month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by 370 units. What should be the overall effect on the company's monthly net operating income of this change? image text in transcribed
image text in transcribed
The marketing manager believes that a $16,000 increase in the monthly advertising budget would result in a 200 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?
image text in transcribed
Determine the dollar sales to attain the company's target profit. (Round your answer to the nearest whole dollar amount.)
Data concerning Wislocki Corporation's single product appear below. Per Unit $200 Percent of Sales 1008 Selling price Variable expenses Contribution margin 388 620 Fixed expenses are $1,038,000 per month. The company is currently selling 9,700 units per month Required: The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $12 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $108,000 per month. The marketing manager predicts that introducing this sales Incentive would increase monthly sales by 370 units. What should be the overall effect on the company's monthly net operating income of this change? Change in net operating income Shelhorse Corporation produces and sells a single product. Data concerning that product appear below. Per Unit $130 Selling price Variable expenses Contribution margin Percent of Sales 100 208 808 $104 Fixed expenses are $359,000 per month. The company is currently selling 5,400 units per month Required: The marketing manager believes that a $16,000 increase in the monthly advertising budget would result in a 200 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change? Change in net operating income The contribution margin ratio of Kuck Corporation's only product is 60%. The company's monthly fixed expense is $455,700 and the company's monthly target profit is $41,700. Required: Determine the dollar sales to attain the company's target profit. (Round your answer to the nearest whole dollar amount.) Sales

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Impact Of Globalization On International Finance And Accounting

Authors: David Procházka

1st Edition

3319687611, 9783319687612

More Books

Students also viewed these Accounting questions