TB Problem Qu$.6-218($Algo$)$ Data concerning Wislocki...

Data concerning Wislocki Corporation's single product appear below:

Fixed expenses are $$1,047,000$ per month. The company is currently selling $9,300$ 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 $$13$ per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $$107,000$ per

month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by $430$ units. What should

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