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

question 93

Multiple Choice

Data concerning Sotero Corporation's single product appear below: The company is currently selling 5,000 units per month. Fixed expenses are $319,000 per month. Consider each of the following questions independently.
-This question is to be considered independently of all other questions relating to Sotero 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 $37,000 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 $36,100
• B) decrease of $74,500
• C) decrease of $500
• D) increase of $419,500

Identify societal patterns of inequality based on class, gender, race, and ethnicity.

Comprehend the fundamental relationship between societies and their natural environments.

Evaluate the impact of flat network structures versus traditional bureaucratic structures.

Define the concept and types of formal organizations and their objectives.

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Definitions:

Poverty Threshold

The minimum level of income deemed adequate in a particular country, determining which individuals or families are classified as living in poverty.

Welfare to Work

Welfare to work programs are government or organizational initiatives designed to encourage or require individuals receiving welfare assistance to engage in employment or work-related activities.

Income Levels

Categories of annual income that differentiate individuals, households, or other groupings, often used to analyze economic and social trends.

Cost-of-Living

The amount of money needed to cover basic expenses such as housing, food, taxes, and healthcare in a certain place and time.