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Below is a variable costing income statement for Wilner Glass Company, a maker of bottles for the beverage industry. For the coming year, the company is considering hiring 3 additional sales representatives at $78,400 each for base salary plus 4 percent of their sales for commissions. The company anticipates that each sales representative will generate $883,000 of incremental sale.
Calculate the impact on profit of the proposed hiring decision should the company hire the two additional sales representatives?
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