This Question Is to Be Considered Independently of All Other

question 138

Multiple Choice

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:

Not-For-Profit Organization

An organization that operates for purposes other than making a profit, such as charity, education, or social causes.

Strongest Selling Point

A unique feature or aspect that makes a product or service stand out from competitors.

College Graduate

An individual who has completed a course of study at a college or university and received a degree.

Upper-Level Manager

A high-level executive who is responsible for overseeing the strategic direction and decision-making within an organization.