The fixed costs of Chun Company are $309,000 and the total variable costs for its only product are 45% of the sales price, which is $100. Chun currently sells 7,400 units per month and is looking to sell more. Consider each of the following independently: Part A The marketing manager is considering lowering base salaries of salespeople by a collective amount of $39,000 per month while increasing the sales commission by $8 per unit. He believes this will increase monthly sales by 130 units. If so, what would the effect of this change in compensation have on monthly income? INCREASE OR DECREASE of $

The fixed costs of Chun Company are $309,000 and the total variable costs for its only product are 45% of the sales price, which is $100. Chun currently sells 7,400 units per month and is looking to sell more. Consider each of the following independently: Part A The marketing manager is considering lowering base salaries of salespeople by a collective amount of $39,000 per month while increasing the sales commission by $8 per unit. He believes this will increase monthly sales by 130 units. If so, what would the effect of this change in compensation have on monthly income? INCREASE OR DECREASE of $

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 35P

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