Green Industries Has Two Sales Territories-North and South

question 27

Multiple Choice

Green Industries has two sales territories-North and South.Financial information for the two territories is presented below: Because the company is in a start-up stage,corporate management feels that the North sales territory is creating too much of a cash drain on the company and it should be eliminated.If the North territory is discontinued,one sales manager (whose salary is $40,000 per year) will be relocated to the South territory.By how much would Green's income change if the North territory is eliminated?

• A)increase by $88,000
• B)increase by $48,000
• C)decrease by $267,000
• D)decrease by $227,000

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Definitions:

Luxury Auto Brand

A car manufacturer that specializes in high-end vehicles characterized by premium features, quality, and price.

Daily Budget

An allocation of funds set aside for spending on specific tasks or activities within a single day.

Advertiser Risk

The potential for loss or negative outcomes faced by advertisers due to various factors such as audience reception, media placement errors, or campaign failures.

Exposure of Ads

The process of presenting an advertisement to a target audience to create awareness or generate interest.