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

question 90

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.If the price is changed,how many units will Knoll need to sell for profit to remain the same as before the price change?

• A)10,000
• B)11,250
• C)12,000
• D)12,500

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Definitions:

Normative Social Influence

The influence of other people that leads an individual to conform in order to be accepted and liked by the group, even if it means going against their own beliefs or behaviors.

Persuasive Arguments Theory

A theory that focuses on how the quality and the quantity of arguments can influence attitude change and persuasion.

Social Facilitation Theory

The theory that the presence of others enhances the performance on simple tasks but may impair performance on complex tasks.

Polarized Positions

Situations or opinions that are drastically divided between two extremes, with little to no middle ground or compromise.