Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This is a company's data for the most recent month Selling price Variable expenses Contribution margin Per Unit $220 66 Percent of Sales 100% 303

image text in transcribed

image text in transcribed

This is a company's data for the most recent month Selling price Variable expenses Contribution margin Per Unit $220 66 Percent of Sales 100% 303 70% $154 Fixed expenses are $991.000 per month. The company normally sells 8.000 units per month. The marketing manager is proposing a sales commission of $11 per unit. The sales staff would need to accept a decrease in their salaries of a total $74.000 per month. The marketing manager predicts that this change would increase monthly sales by 200 units. What should be the overall effect of the change on the comp monthly net operating income? Multiple Choice increase of $14,600 increase of $71,800 increase of $1,246,600 decrease of $133.400

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

Students also viewed these Accounting questions

Question

What penalty (if any) should Foster receive?

Answered: 1 week ago

Question

=+1. What is the schedule for this project?

Answered: 1 week ago