Compute the expected new net income

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Reference no: EM132817433

Question - 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. Given the increased incentive, they expect net sales to increase by 15%. As a result, they estimate that gross profit will increase by $58,238 and expenses by $84,384. Compute the expected new net income. Then, compute the revised profit margin and gross profit rate.

Reference no: EM132817433

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