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ABC Corp's most recent income statement is shown the following: Unit selling price $30 Sales $472,500 Unit Variable cost $12 Variable cost $189,000 Unit Contribution Margin $18 Contribution Margin $283,500 Fixed Cost $185,000 Income Sales volume 15,750 units Total $98,500 Total Total Total Net The business decided to remove the lazy sales staff salary $50,000, instead, pay sales commission $5 to sales staff for each unit sold. By doing so, the estimated sales in units will increase by 50%. Please calculate how much is the change in net income?

ABC Corp's most recent income statement is shown the following: Unit selling price $30 Sales $472,500 Unit Variable cost $12 Variable cost $189,000 Unit Contribution Margin $18 Contribution Margin $283,500 Fixed Cost $185,000 Income Sales volume 15,750 units Total $98,500 Total Total Total Net The business decided to remove the lazy sales staff salary $50,000, instead, pay sales commission $5 to sales staff for each unit sold. By doing so, the estimated sales in units will increase by 50%. Please calculate how much is the change in net income?

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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ABC Corp's most recent income statement is shown the following: Unit selling price $30 Sales $472,500 Unit Variable cost $12 Variable cost $189,000 Unit Contribution Margin $18 Contribution Margin $283,500 Fixed Cost $185,000 Income Sales volume 15,750 units Total $98,500 Type here to search Total C Total Total The business decided to remove the lazy sales staff salary $50,000, instead, pay sales commission $5 to sales staff for each unit sold. By doing so, the estimated sales in units will increase by 50%. Please calculate how much is the change in net income? Net
Transcribed Image Text:ABC Corp's most recent income statement is shown the following: Unit selling price $30 Sales $472,500 Unit Variable cost $12 Variable cost $189,000 Unit Contribution Margin $18 Contribution Margin $283,500 Fixed Cost $185,000 Income Sales volume 15,750 units Total $98,500 Type here to search Total C Total Total The business decided to remove the lazy sales staff salary $50,000, instead, pay sales commission $5 to sales staff for each unit sold. By doing so, the estimated sales in units will increase by 50%. Please calculate how much is the change in net income? Net
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