Asked by
Allyrian Bacon
on Oct 11, 2024
Verified
This question is to be considered independently of all other questions relating to Houpe 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 $11 per unit.In exchange, the sales staff would accept a decrease in their salaries of $58,000 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) increase of $700
B) increase of $56,900
C) decrease of $115,300
D) increase of $588,700
Sales Commissions
Payments made to salespersons or employees based on the amount of sales generated.
Monthly Sales
The total revenue a business generates from selling its goods or services within a specific month.
Net Operating Income
Earnings before interest and taxes (EBIT); a measure of a company's profitability from its regular, core operations.
- Assess the impact of modifications in marketing approaches, such as alterations to the advertising budget and modifications in sales commissions, on the net operating income.
Verified Answer
JS
Learning Objectives
- Assess the impact of modifications in marketing approaches, such as alterations to the advertising budget and modifications in sales commissions, on the net operating income.
Related questions
This Question Is to Be Considered Independently of All Other ...
This Question Is to Be Considered Independently of All Other ...
This Question Is to Be Considered Independently of All Other ...
This Question Is to Be Considered Independently of All Other ...
This Question Is to Be Considered Independently of All Other ...