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The vice-president of marketing and the director of human resources have developed a proposal whereby the company would compensate the sales force on a strictly commission basis using 20% of net sales. Given the increased incentive, they expect net sales to increase by 15%. As a result, they estimate that gross profit will increase by $43,208 and operating expenses by $71,922. Compute the expected new net income. (Hint: You do not need to prepare an income statement).

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9444792

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