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A. A company incurs selling expenses composed of a fixed amount per quarter and a variable commission based on sales volume (shown below). What is the fixed quarterly sales expense and the commission % given only the following data? Please give an explanation.
Sales Selling Expense
Q1 20,000,000 2.050.000
Q2 12.500.000 1,400,000
Q3 22,000,000 2,000,000
Q4 16,000,000 1,000,000
B. If Management decides to increase sales commission by 35% and decrease fixed quarterly selling expenses by 30%, also assuming a 10% growth in sales compared to the prior year, what will next four quarters sales and selling expenses amount to as shown above?
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