Data Concerning Lemelin Corporation's Single Product Appear Below: the Company

question 39

Multiple Choice

Data concerning Lemelin Corporation's single product appear below: The company is currently selling 7,000 units per month. Fixed expenses are $581,000 per month.
The marketing manager believes that an $11,000 increase in the monthly advertising budget would result in a 100 unit increase in monthly sales. What should be the overall effect on the company's monthly net operating income of this change?

• A) decrease of $11,000
• B) increase of $11,500
• C) decrease of $500
• D) increase of $500

---

Definitions:

Perceptual Processing

The act of receiving, organizing, and interpreting sensory information from the environment.

Uniform Parts

Elements or components that are identical in form or function within a larger system or group.

Reversible

Capable of being turned back to the previous state or condition without causing permanent change or damage.

Figure-Ground Patterns

The organization of visual fields into objects (the figures) that stand out from their surroundings (the ground).