Data Concerning Sa Corporation's Single Product Appear Below: Fixed

question 6

Multiple Choice

Data concerning Sa Corporation's single product appear below: Fixed expenses are $445,000 per month.The company is currently selling 6,000 units per month.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 $43,000 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 $88,900
• B)decrease of $2,900
• C)increase of $42,100
• D)increase of $537,100

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Definitions:

Schizophrenia

A severe mental disorder characterized by delusions, hallucinations, disorganized speech, and impaired cognitive function.

Electroconvulsive Therapy (ECT)

Form of biomedical therapy to treat severe depression in which electrodes are placed on either one or both sides of a person’s head and an electric current is passed through the electrodes that is strong enough to cause a seizure or convulsion.

Schizophrenia

A long-term mental disorder involving a breakdown in the relation between thought, emotion, and behavior, leading to faulty perception, inappropriate actions and feelings, withdrawal from reality and personal relationships into fantasy and delusion, and a sense of mental fragmentation.

Eye-Movement Desensitization Reprocessing

A psychotherapy treatment designed to alleviate the distress associated with traumatic memories, emphasizing rhythmic eye movements.