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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
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
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