Data concerning Marchman Corporation's single product appear below: Per Unit $120 Selling price............ Variable expenses Contribution...

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Data concerning Marchman Corporation's single product appear below: Per Unit $120 Selling price............ Variable expenses Contribution margin... 72 $48 Percent of Sales 100% 60% 40% The company is currently selling 4,000 units per month. Fixed expenses are $166,000 per month. Consider each of the following questions independently. This question is to be considered independently of all other questions relating to Marchman Corporation. Refer to the original data when answering this question. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $8 per unit. In exchange, the sales staff would accept a decrease in their salaries of $27,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 100 units. What should be the overall effect on the company's monthly net operating income of this change? decrease of $1,000 decrease of $55,000 increase of $26,200 increase of $191,000 Data concerning Marchman Corporation's single product appear below: Per Unit $120 Selling price............ Variable expenses Contribution margin... 72 $48 Percent of Sales 100% 60% 40% The company is currently selling 4,000 units per month. Fixed expenses are $166,000 per month. Consider each of the following questions independently. This question is to be considered independently of all other questions relating to Marchman Corporation. Refer to the original data when answering this question. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $8 per unit. In exchange, the sales staff would accept a decrease in their salaries of $27,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 100 units. What should be the overall effect on the company's monthly net operating income of this change? decrease of $1,000 decrease of $55,000 increase of $26,200 increase of $191,000

Answer rating: 100% (QA)

c increase of 26200 Explanation The increase in sales d... View the full answer