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:

Cognitive Approach

A psychological perspective that focuses on mental processes such as perception, memory, and problem-solving to understand behavior.

Balance Theory

A theory suggesting that individuals strive for psychological consistency in their relationships and beliefs, attempting to maintain a harmonious balance in their feelings and thoughts.

Cohesive Group

A group characterized by a strong sense of unity and allegiance among its members, which often leads to high levels of group loyalty and productivity.

Charismatic Leader

An individual in a leadership role who exhibits boldness and self-confidence and emphasizes the greatness of the ingroup.