Question 5 Data concerning UISG Incorporation is well known in Greater Bay area. It recently plans to review its operati
Posted: Tue Apr 26, 2022 9:43 am
Question 5
Data concerning UISG Incorporation is well known in Greater Bay
area. It recently plans to review its operation and financial
performance of its single product appear below: Selling price $195,
Variable cost $39. Fixed expenses are $650,000 per month. The
company is currently selling 8,000 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 $12 per unit. In exchange, the sales staff would
accept an overall decrease in their salaries of $79,000 per month.
The marketing manager predicts that introducing this sales
incentive would increase monthly sales by 300 units.
Required:
Calculate overall effect on the company's monthly net operating
income of this change. Will you recommend adopting the proposal,
why and why not? Show your work.( 30 marks )
please details answer
Data concerning UISG Incorporation is well known in Greater Bay
area. It recently plans to review its operation and financial
performance of its single product appear below: Selling price $195,
Variable cost $39. Fixed expenses are $650,000 per month. The
company is currently selling 8,000 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 $12 per unit. In exchange, the sales staff would
accept an overall decrease in their salaries of $79,000 per month.
The marketing manager predicts that introducing this sales
incentive would increase monthly sales by 300 units.
Required:
Calculate overall effect on the company's monthly net operating
income of this change. Will you recommend adopting the proposal,
why and why not? Show your work.( 30 marks )
please details answer