Hartung Corporation produces and sells a single product. Data concerning that product appear below: Selling...
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Hartung Corporation produces and sells a single product. Data concerning that product appear below: Selling price Variable expenses Contribution margirn Per Unit $140 42 98 ercent of Sales 100% 30% 70% Fixed expenses are $147,000 per month. The company is currently selling 2,000 units per month. 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 a decrease in their salaries of $22,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 400 units. What should be the overall effect on the company's monthly net operating income of this change? Select one a. increase of $16,800 b. increase of $226,000 c. increase of $30,000 d. decrease of $14,000 Havely International Corporation's only product sells for $200.00 per unit and its variable expense is $70.00. The company's monthly fixed expense is $390,000 per month. The unit sales to attain the company's monthly target profit of $10,000 is closest to Select one a. 5,714 b. 3,077 c. 3,597 d. 2,000
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