Question: 2. (12 points) Data concerning Murray Corporation's single product appear below: Per Unit Percent of Sales Selling price $150 100.00% Variable expenses $30 20.00% Contribution

2. (12 points) Data concerning Murray Corporation's single product appear below: Per Unit Percent of Sales Selling price $150 100.00% Variable expenses $30 20.00% Contribution margin $120 80.00% Fixed expenses are $1,050,600 per month. The company is currently selling 9,100 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $17 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $140,600 per month. The marketing manager predicts that introducing this sales incentive would increase monthly unit sales by 10%. Required: Prepare two contribution format income statements, one based the company's current revenue and expense structure and another based on the marketing manager's proposal. What would be the overall effect on the company's monthly net operating income of this change in (a) dollar increase or decrease and (b) percent increase or decrease? Round the percent to the nearest tenth of one percent. Show your work

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