This Question Is to Be Considered Independently of All Other

question 50

Multiple Choice

This question is to be considered independently of all other questions relating to Boenisch 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 $16 per unit. In exchange, the sales staff would accept a decrease in their salaries of $84,000 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 600 units. What should be the overall effect on the company's monthly net operating income of this change?

• A)increase of $74,400
• B)increase of $64,800
• C)decrease of $103,200
• D)increase of $928,800

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Definitions:

Management Formation

The process of organizing and setting up a team of managers or the structure of management within an organization.

Psychological Contract

The unwritten, implicit agreements and expectations between an employer and employees regarding treatment, responsibilities, and benefits.

Social Contract

A theoretical agreement within a society regarding the rights and duties of the state and its citizens, often used to justify political or moral obligations.

Labor Utilization

The strategic use and management of human resources to optimize productivity and efficiency in the workplace.