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:

Respiration

The physiological process of inhaling oxygen and exhaling carbon dioxide from the body, essential for maintaining life.

Hypnosis

A trance-like state of focused attention and heightened suggestibility, often used for therapeutic purposes.

Suggestible

The quality of being inclined to accept and act on the suggestions of others, often leading to increased susceptibility to influence.

Relaxed State

A relaxed state refers to a condition of reduced stress and tension, characterized by calmness and mental, physical, and emotional well-being.