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Timonen Corporation produces and sells a single product Data concerning the product appear below: Fixed expenses total dollar 1, 044, 000 per month. Timonen is
Timonen Corporation produces and sells a single product Data concerning the product appear below: Fixed expenses total dollar 1, 044, 000 per month. Timonen is currently selling 9.000 units per month. Timonen's sales manager would like to begin offering sales commissions as an incentive for the sales staff. The sales manager believes a commission of dollar 14 per unit will work well. In exchange for receiving the commission on each sale, the sales staff would accept an overall decrease in their salaries of dollar 110.000 per month The sales manager predicts that introducing this sales incentive would increase monthly sales by 400 units. Required: Calculate the overall effect on Timonen's monthly net operating income if this change is made
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