Data concerning Wislocki Corporation's single product appear below: Per...
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Accounting
Data concerning Wislocki Corporation's single product appear below:
Per Unit Percent of Sales
Selling price $
Variable expenses
Contribution margin $
Fixed expenses are $ per month. The company is currently selling 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 $ per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $ per month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by units. What should be the overall effect on the company's monthly net operating income of this change?
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