Data Concerning Wislocki Corporation's Single Product Appear Below

question 151

Essay

Data concerning Wislocki Corporation's single product appear below:
Fixed expenses are $466,000 per month. The company is currently selling 6,000 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 $11 per unit. In exchange, the sales staff would accept an overall decrease in their salaries of $55,000 per month. The marketing manager predicts that introducing this sales incentive would increase monthly sales by 100 units. What should be the overall effect on the company's monthly net operating income of this change? Show your work!

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Definitions:

Motor Neurons

Nerve cells that initiate and conduct impulses from the central nervous system to muscles or glands, inducing action.

Action Potentials

The brief electrical impulses that serve as the fundamental signals by which neurons send information over long distances within the nervous system.

Serotonin Neurons

Neurons that produce and release serotonin, a neurotransmitter important for mood regulation, appetite, and sleep.

Depression

A common mental disorder characterized by persistent sadness and a lack of interest or pleasure in previously rewarding or enjoyable activities.