Data Concerning Dorazio Corporation's Single Product Appear Below: Fixed

question 195

Multiple Choice

Data concerning Dorazio Corporation's single product appear below: Fixed expenses are $87,000 per month. The company is currently selling 1,000 units per month. Management is considering using a new component that would increase the unit variable cost by $28. Since the new component would increase the features of the company's product, the marketing manager predicts that monthly sales would increase by 400 units. What should be the overall effect on the company's monthly net operating income of this change?

• A) increase of $5,600
• B) increase of $33,600
• C) decrease of $5,600
• D) decrease of $33,600

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Definitions:

Verbally Aggressive

Exhibiting aggression or hostility through words, including insults, threats, or bullying language.

Physically Aggressive

Exhibiting behavior that involves physical force intended to harm or damage others or objects.

Psychological Harm

Emotional or mental injury inflicted upon an individual, which can result from experiences such as stress, trauma, or abuse.

Aggression

A range of behaviors that can result in both physical and psychological harm to oneself, others, or objects in the environment, often manifesting as anger or hostility.