what would the effect be on projected operating income if you decided to remove executive bonus and decrease your selling administrative costs by 6%. Answer the whole following situation. would you recommend this action? Lastly a reasonsing for this

Do with out any executive bonuses, just the decrease by 6%

What would the effect be on the Projected Operating Income if you decided to remove executive bonus' and decrease Unit S \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|} \hline \multicolumn{11}{|c|}{ SALES BUDGET } \\ \hline & & January & & February & & March & & April & & May \\ \hline Unit Sales & & 11,894 & & 33,741 & & 39,215 & & 47,397 & & 61,890 \\ \hline Sales Price per Unit & $ & 500.00 & $ & 500.00 & $ & 500.00 & $ & 500.00 & $ & 500.00 \\ \hline Total Sales Revenue & $ & 5,947,000 & $ & 16,870,500 & $ & 19,607,500 & $ & 23,698,500 & $ & 30,945,000 \\ \hline \end{tabular} 1 PRODUCTION BUDGET 3 Unit Sales Desired Ending Inventory Total Units Needed 7 Beginning Inventory 8 Number of Units to Produce \begin{tabular}{|c|c|c|c|c|} \hline January & February & March & April & May \\ \hline 11,894 & 33,741 & 39,215 & 47,397 & \multirow{2}{*}{61,890} \\ \hline 22,370 & 26,000 & 31,424 & 41,033 & \\ \cline { 1 - 4 } 34,264 & 59,741 & 70,639 & 88,430 & \\ \hline 0 & 22,370 & 26,000 & 31,424 \\ \hline 34,264 & 37,370 & 44,640 & 57,006 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|} \hline \multicolumn{7}{|c|}{ DIRECT LABOR BUDGET } \\ \hline & \multicolumn{2}{|r|}{ January } & \multicolumn{2}{|r|}{ February } & \multicolumn{2}{|r|}{ March } \\ \hline Units to be Produced & & 34,264 & & 37,370 & & 44,640 \\ \hline Direct Labor Hours Per Unit & & 3.00 & & 3.00 & & 3.00 \\ \hline \begin{tabular}{l} Total Direct Labor Hours \\ Required \end{tabular} & & 102,792.85 & & 112,110.79 & & 133,919.00 \\ \hline Direct Labor Cost Per Hour & $ & 24.00 & $ & 24.00 & $ & 24.00 \\ \hline Total Direct Labor Cost & $ & 2,467,028 & $ & 2,690,659 & $ & 3,214,056 \\ \hline \multicolumn{3}{|l|}{ Direct Labor Hours Per Unit } & & 3.00 & & \\ \hline \multicolumn{3}{|l|}{ Direct Labor Cost Per Hour } & $ & 24.00 & & \\ \hline \multicolumn{3}{|c|}{ Cost of Direct Labor per Product } & $ & 72.00 & & \\ \hline \end{tabular} Total Estimated OH Costs (for the quarter) Total Estimated DLHs (for the quarter) PRODUCT COST PER UNIT \begin{tabular}{|l|cr|} \hline \multicolumn{1}{|c|}{ Item } & \multicolumn{2}{c|}{ Amount } \\ \hline Direct Materials & $ & 220.00 \\ \hline Direct Labor & $ & 72.00 \\ \hline Manufacturing Overhead & $ & 5.21 \\ \hline Total Unit Cost & $ & 297.21 \\ \hline \end{tabular} OPERATING EXPENSES BUDGET \begin{tabular}{|c|c|c|c|c|c|c|} \hline & \multicolumn{2}{|c|}{ January } & \multicolumn{2}{|c|}{ February } & \multicolumn{2}{|c|}{ March } \\ \hline Number of Units to be Sold & & 1,894 & & 3,741 & & 9,215 \\ \hline Variable Selling \& Administrative Expenses Per Unit & $ & 2.00 & $ & 2.00 & $ & 2.00 \\ \hline Total Variable Operating Expenses & $ & 23,788 & $ & 67,482 & \$ & 78,430 \\ \hline Fixed Selling \& Administrative Expenses & $ & 1,576 & $ & 1,576 & $ & 1,576 \\ \hline Total Operating Expenses & $ & 25,364 & $ & 69,058 & $ & 80,006 \\ \hline \end{tabular} \begin{tabular}{|l|rr|rr|r|r|} \hline \multicolumn{7}{|c|}{ BUDGETED INCOME STATEMENT } \\ \hline & \multicolumn{2}{|c|}{ January } & \multicolumn{2}{c|}{ February } & \multicolumn{1}{c|}{ March } \\ \hline Number of Units to be Sold & & 11,894 & & \multicolumn{1}{c|}{33,741} & & \multicolumn{1}{c|}{39,215} \\ \hline Sales Revenue & $ & 5,947,000 & $ & 16,870,500 & $ & 19,607,500 \\ \hline Cost of Goods Sold: & $ & 3,535,006 & $ & 10,028,136 & $ & 11,655,060 \\ \hline Gross Profit (Margin) & $ & 2,411,994 & $ & 6,842,364 & $ & 7,952,440 \\ \hline Operating Expenses & $ & 25,364 & $ & 69,058 & $ & 80,006 \\ \hline Operating Income & $ & 2,386,630 & $ & 6,773,306 & $ & 7,872,434 \\ \hline \end{tabular}