This Question Is to Be Considered Independently of All Other

question 43

Multiple Choice

This question is to be considered independently of all other questions relating to Laro Corporation. Refer to the original data when answering this question. 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 $40,000 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 100 units. What should be the overall effect on the company's monthly net operating income of this change?

• A)increase of $376,600
• B)increase of $1,600
• C)decrease of $78,400
• D)increase of $39,100

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Definitions:

Mutation

A change in the DNA sequence within a gene or chromosome of an organism that can result in a different trait or characteristic.

Evolutionary Change

The pathway through which multiple categories of living beings are believed to have advanced and diversified from primitive forms during the chronological history of Earth.

Fully Aquatic

Pertains to organisms that spend their entire life cycle living in water.

Baleen

A filter-feeding system inside the mouths of baleen whales, it consists of keratin plates for filtering small food items from water.