Question
The vice-president of marketing and director of human resources have proposed that the company change its compensation c the sales force to a commission basis
The vice-president of marketing and director of human resources have proposed that the company change its compensation c the sales force to a commission basis rather than paying a fixed salary. Given the extra incentive, they expect sales to increase 15%. They estimate that gross profit will increase by $27,000, operating expenses by $13,500, and income tax expense by $2 Non-operating expense is not expected to change. Calculate the expected new gross profit and net income amounts. (Hint: Yo not need to prepare a formal statement of income.) Expected new gross profit Expected net income amount $ $
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