Question: Data concerning Tietz Corporation's single product appear below: per unit percent of sales selling price $190 100% variabe expenses 38 20% contribution margin $152 80%

Data concerning Tietz Corporation's single product appear below:

	per unit	percent of sales
selling price	$190	100%
variabe expenses	38	20%
contribution margin	$152	80%

Fixed expenses are $1,050,000 per month. The company is currently selling 9,600 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 $10 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $104,000 per month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by 460 units.

Required:

What should be the overall effect on the company's monthly net operating income of this change?(Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.)

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