Data Concerning Wislocki Corporation's Single Product Appear Below: Fixed

question 224

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:

Evolution

The method through which various types of life are believed to have evolved and branched out from ancestral forms throughout Earth's history.

Radioisotopes

Unstable isotopes that spontaneously emit radiation; also called radioactive isotopes.

Half-Life

The time required for half the atoms of a radioactive substance to decay or for a drug or other substance to lose half its pharmacologic, physiologic, or radiologic activity.

Potassium-40

A radioactive isotope of potassium used in dating geological materials, as it decays into argon-40 over a known period of time.