Data Concerning Marchman Corporation's Single Product Appear Below: the Company

question 42

Multiple Choice

Data concerning Marchman Corporation's single product appear below: The company is currently selling 4,000 units per month.Fixed expenses are $166,000 per month.Consider each of the following questions independently. This question is to be considered independently of all other questions relating to Marchman 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 $8 per unit.In exchange,the sales staff would accept a decrease in their salaries of $27,000 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)decrease of $1,000
• B)decrease of $55,000
• C)increase of $26,200
• D)increase of $191,000

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Definitions:

Health Promotion

The process of enabling people to increase control over, and to improve, their health through a range of strategies and approaches.

Wellness Strategies

Approaches or plans designed to promote overall health and well-being by addressing physical, mental, and emotional health aspects.

Routine Exercise

A regular physical activity regime followed for the purpose of improving or maintaining physical fitness and overall health.

Fortified

Often refers to food or drinks that have had nutrients added to them that do not naturally occur in those products, to enhance their nutritional value.