Question: Submit answer using INCREMENTAL ANALYSIS APPROACH. Incremental analysis below: Expected CM (480-300) 180 times 650 units = $117,000 Present CM 200 times 500 units =
Submit answer using INCREMENTAL ANALYSIS APPROACH.
Incremental analysis below: Expected CM (480-300) 180 times 650 units = $117,000 Present CM 200 times 500 units = $100,000 Increase in CM $17,000 Increase in expenses - 15,000 Increase in NOI = 2,000 What is the profit impact if RBC: (1) pays a $15 sales commission per bike sold instead of paying salespersons flat salaries that currently total $6,000 per month, and (2) increases unit sales from 500 to 575 bikes
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