Data Concerning Bazin Corporation's Single Product Appear Below

question 98

Multiple Choice

Data concerning Bazin Corporation's single product appear below:
Fixed expenses are $384,000 per month.The company is currently selling 6,000 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 $9 per unit.In exchange,the sales staff would accept a decrease in their salaries of $46,000 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 500 units.What should be the overall effect on the company's monthly net operating income of this change?

• A) increase of $27,500
• B) decrease of $64,500
• C) increase of $41,500
• D) increase of $507,500

---

Definitions:

Civil Court

A branch of the legal system where non-criminal cases, including disputes between individuals or organizations over rights, contracts, and liabilities, are adjudicated.

Demographics Of Crime

The statistical characteristics of populations, such as age, race, and gender, as they relate to criminal activity.

Obstruction Of Justice

The act of willfully interfering with the process of justice and law enforcement, including hindering the investigation or prosecution of a crime.

Material Objects

Objects that have a physical presence and can be perceived by the senses.