Question: Question 2: (4 marks: each sales level 2 marks) Data concerning Beta single product appear below: Per Unit Percent of Sales Selling price Variable expenses

Question 2: (4 marks: each sales level 2 marks) Data concerning Beta single product appear below: Per Unit Percent of Sales Selling price Variable expenses 200 The company is currently selling 300 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. Fixed expenses are $ 80.000 per month. The marketing manager has proposed a commission of S20 per unit. In exchange, monthly salaries will decreases by 59,600 per month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by 80 units. Instructions: What should be the overall effect on the company's monthly net operating income of this change? Use a comparative table for the two levels of production 300 and 380 units. (each level 2 marks)

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