Existing contribution = Units sold * contribution pu
= 8000 units * $68 = $544000
Contribution with sales commission :-
(Units sold * contribution pu) + Savings
contribution pu = $68 - $16 = $52
(8700 * $52) + $102000 = $554400
Increase in operating income = $554400 - $544000 = $10400
Boenisch z connect Ben Johnson Managenal Accounting for Manager, Noreen Managerial Accounting for Managers Noreen,...
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