Question: cc TB Problem Qu. 5-234 Data concerning Wislocki ... Data concerning Wislocki Corporation's single product appear below: Selling price Variable expenses Contribution margin Per Unit
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TB Problem Qu. 5-234 Data concerning Wislocki ... Data concerning Wislocki Corporation's single product appear below: Selling price Variable expenses Contribution margin Per Unit $ 185 37 Percent of Sales 100% 20% 80% $ 148 Fixed expenses are $1,049,000 per month. The company is currently selling 9,500 units per month. Required: The marketing manager would like to introduce sales commissions as an Incentive for the sales staff. The marketing manager has proposed a commission of $11 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $105,000 per month. The marketing manager predicts that Introducing this sales Incentive would increase monthly sales by 450 units. What should be the overall effect on the company's monthly net operating Income of this change? Change in net operating income
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