The company is currently selling 5,000 units per month. Fixed expenses are $400,000 per month. The marketing manager would like to introduce sales commissions of $9 per unit as an incentive for the sales staff. In exchange, the sales staff would accept a decrease in their salaries, which total toa10%decrease infixed expenses. The marketing manager predicts that introducing thesales commissions would increase monthly sales by 100 units. What is the overall effect on the company's monthly net operating income from this change?
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The company is currently selling 5,000 units per month. Fixed expenses are $400,000 per month. The m...
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