Mm co. predicts sales of $30,000 for may. mm co. pays a sales manager a monthly salary of $3,000 plus a commission of 6% of sales dollars. mm’s production manager recently found a way to reduce the amount of packaging mm uses. as a result, mm’s product will receive better placement on store shelves and thus may sales are predicted to increase by 8%. in addition, mm’s shipping costs are predicted to decrease from 4% of sales to 3% of sales.

Wo firms, a and b, each currently dump 50 tons of chemicals into the local river. the government has decided to reduce the pollution and from now on will require a pollution permit for each ton of pollution dumped into the river. it costs firm a $100 for each ton of pollution that it eliminates before it reaches the river, and it costs firm b $50 for each ton of pollution that it eliminates before it reaches the river. the government gives each firm 20 pollution permits. government officials are not sure whether to allow the firms to buy or sell the pollution permits to each other. what is the total cost of reducing pollution if firms are not allowed to buy and sell pollution permits from each other? what is the total cost of reducing pollution if the firms are allowed to buy and sell permits from each other? a. $3,000; $1,500 b. $4,500; $3,500 c. $4,500; $4,000 d. $4,500; $2,500