Data concerning Curtis Corporation's single product appear below:

Per Unit $\%$ of Sales

Selling price $135\mathrm{.}00$$ $100\mathrm{.}0\%$

Variable expenses $83\mathrm{.}7062\mathrm{.}0\%$

Contribution margin $51\mathrm{.}30$$ $38\mathrm{.}0\%$

Fixed expenses are $$183,000$ per month. The company is currently selling $9,000$ 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 $$15$ per unit. In exchange,

the sales staff would accept an overall decrease in their salaries of $$90,000$ per month. The

marketing manager predicts that introducing this sales incentive would increase monthly

sales by $550$ units. Show your work!

Detail from above paragraph

Fixed expenses are per month are: $183,000$$

Current monthly units sales are: $3,800$

Marketing manager proposal:

Increase in variable costs $($sales commission$)$: $15$$

Decrease in sales salaries: $90,000$$

Target impact of proposal:

Unit sales change $550$

Required:

a What is the new contribution margin per unit?

b What is the new sales volume?

c What is the new total contribution margin?

d What is the current total contribution margin?

e What is the change in total contribution margin?

f What should be the overall effect on the company's monthly net operating income of this change?