1. Currently we are selling 6,000 units. They are considering reducing the price 10% but plan on still paying a sales commission of $12. They think that sales will increase by 1,200 units. What is the income now and if they reduce the price?
a) $120,000 and $105,600
b) $105,600 and $120,000
c) $120,000 and $120,000
d) $105,600 and $107,800
2. Refer to the above. Materials of $9,000 and labor of $7,500 are incurred. Overhead is 120% of labor. What is the cost of this job?
a) $25,500
b) $27,300
c) $16,500
d) none of the above