15. Bismarck Corporation has a single product whose selling price is $19. At an expected...
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15. Bismarck Corporation has a single product whose selling price is $19. At an expected sales level of $1,840,000 the companys variable expenses are $560,000 and its fixed expenses are $300,000. The marketing manager has recommended paying a sales commission of 2% of sales to salespersons instead of paying them a fixed salary of $30,000. The company expects this change will increase unit sales by 5%. What would be the companys net operating income if the marketing managers recommendation is adopted?
A. $ 660,000 B. $ 659,600 C. $ 676,080 D. $ 706,080 E. $ 717,840
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