The company is currently selling 5,000 units per month. Fixed expenses are $400,000 per month. The marketing manager would like to introduce sales commissions of $9 per unit as an incentive for the sales staff. In exchange, the sales staff would accept a decrease in their salaries, which total toa10%decrease infixed expenses. The marketing manager predicts that introducing thesales commissions would increase monthly sales by 100 units. What is the overall effect on the company's monthly net operating income from this change?

Garrett is an executive vice president at samm hardware. he researches a proposal by a larger company, maximum hardware, to combine the two companies. by analyzing past performance, conducting focus groups, and interviewing maximum employees, garrett concludes that maximum has poor profit margins, sells shoddy merchandise, and treats customers poorly. what actions should garrett and samm hardware take? a. turn down the acquisition offer and prepare to resist a hostile takeover. b. attempt a friendly merger and use managerial hubris to improve results at maximum. c. welcome the acquisition and use knowledge transfer to impart sam hardware's management practices. d. do nothing; the two companies cannot combine without samm hardware's explicit consent.