Trenton Company is a small but growing manufacturer of telecommunications equipment. Their manufacturing overnead Costs are all fixed. The cost structure of all expenses are inflexible, except sales...

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I need only question 13

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Extracted text: Trenton Company is a small but growing manufacturer of telecommunications equipment. Their manufacturing overnead Costs are all fixed. The cost structure of all expenses are inflexible, except sales force cost. The company has no sales force of its own at the moment; it relies completely on independent sales agents to market its products. The sales agents are compensated as follows: Commission rate 20% of sales Total fixed marketing expense 2$ 260 Jane Petersen, Trenton's controller, has just prepared the company's budgeted income statement for 2021 under the current plan for salesforce. She also made some notes. The statement follows: Trenton Company Budgeted Income Statement For 2021 Notes Sales $ 20,200 100% Direct materials 2,020 10% Direct labor 3,030 2,940 15% Fixed manufacturing overhead Marketing expense Net operating income (before tax) 4,300 20%+$260 $4 7,910 13 Trenton is considering starting its own marketing department. The sales people will receive a 10% commission with a fixed salary of $2460. Is this a good idea? What is the impact on their net operating income, if everything else stays the same. A. It is a good idea because their NOI will increase by $30. B. It is a good idea because their NOI will increase by $100. C. It is a bad idea because their NOI will decrease by $180. D. It is a bad idea because their NOI will decrease by $50. E. None of the above 14 Trenton would like to increase their income, in particular their after-tax income. Assume that they are still using independent sales agents. Tax rate 30% Desired after-tax income $ 7,000 How much more revenue does Trenton have to generate to achieve the desired after-tax income? А. $ 1,902 В. $4 3,800 С. %24 5,537 D. 24 2,090 E. None of the above