Question
The vise president of marketing and director of human resourses have proposed the company change its comensation of the sales force to a commission basis
The vise president of marketing and director of human resourses have proposed the company change its comensation of the sales force to a commission basis rather than paying fixed salary. Given the extra incentive ,they expect sales to increase by 15%. they estimate that gross profit increase by 27000, operating expenses by 13500 , and income tax expense by 2700. Non operating expenses is not expected to change. Calculate the expected new gross profit and net income Amounts)
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Financial Accounting Tools for Business Decision Making
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
5th Canadian edition
978-1118024492
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