Knoll,IncCurrently Sells 15,000 Units a Month for $50 Each,has Variable

question 94

Multiple Choice

Knoll,Inc.currently sells 15,000 units a month for $50 each,has variable costs of $20 per unit,and fixed costs of $300,000.Knoll is considering increasing the price of its units to $60 per unit.This will not affect costs,but demand is expected to drop 20%.Should Knoll increase the cost of its product?

• A)Yes;profit will increase $30,000.
• B)Yes,profit will increase $150,000.
• C)No,profit will decrease $150,000.
• D)No,profit will decrease $30,000.

Understand the concept of balanced trade.

Identify historical trends in trade surpluses and deficits for specific countries.

Understand the theory of comparative and absolute advantage in international trade.

Apply the principles of opportunity cost and comparative advantage to real-world scenarios.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses from revenue.

Accumulated Depreciation

Represents the total depreciation expense allocated to a fixed asset since its purchase, reducing its book value over time.

Industrial Crane

A type of heavy-duty machinery used for lifting and moving heavy or large objects in industrial settings.

Equipment Sale

The process of selling machinery or technology, typically used for business operations, possibly as a way to liquidate assets or upgrade facilities.