Thornbrough corporation produces and sells a single product with the following characteristics: per unit percent of sales selling price $ 220 100 % variable expenses 44 20 % contribution margin $ 176 80 % the company is currently selling 7,000 units per month. fixed expenses are $901,000 per month. the marketing manager would like to introduce sales commissions as an incentive for the sales staff. the marketing manager has proposed a commission of $11 per unit. in exchange, the sales staff would accept a decrease in their salaries of $65,000 per month. (this is the company's savings for the entire sales staff.) the marketing manager predicts that introducing this sales incentive would increase monthly sales by 300 units. what should be the overall effect on the company's monthly net operating income of this change? multiple choice increase of $1,269,500 increase of $37,500 increase of $61,700 decrease of $92,500

German brothels recently began offering a monthly subscription service for multiple purchasers. if you thought that the brothels' encouragement of prostitution was immoral to begin with, would you consider this pricing plan to be even more immoral? suppose a particular patron at a german brothel has the following willingness-to-pay schedule for services at the brothel, per session. session willingness to pay 1st $84 2nd $72 3rd $60 4th $48 5th $36 6th $24 suppose this consumer would not demand any more sessions, even for free. also assume that the marginal cost to the brothel, per session, is constant at $12. at a price of $78.00 per session, the number of sessions demanded by this consumer would be . at this price and quantity, consumer surplus is $ and producer surplus is $ . suppose the brothel has devised a new pricing scheme for consumers who demand more than 1 session. this pricing scheme is a subscription service, whereby consumers can pay a flat fee of $259.20 and can have up to 6 sessions total. using this subscription pricing model, this consumer would demand sessions. under this scenario, consumer surplus is $ and producer surplus is $ . (hint: for consumer surplus, consider how much total value the consumer places on all sessions, versus the total price paid.)