Scottish Company Manufactures a Variety of Toys and Games

question 111

Multiple Choice

Scottish Company manufactures a variety of toys and games. John Chisholm, president, is disappointed in the sales of a new board game. The game sold only 10,000 units in 2018 when 30,000 were projected. Sales for 2019 look no better. At $100 per game, it is not a hot seller. Direct costs of the board game are $56 variable cost and $100,000 fixed. John is considering several options. Option One: Cut the price to $70 and perhaps sell 15,000 units. Option Two: Cut the price to $60, reduce material costs by $10, and cut advertising by $60,000. Anticipated volume for this option is 10,000 units. Option Three: Cut the price to $80 and include a $10 mail-in rebate offer. It is anticipated that 15,000 units could be sold and only 30 percent of the rebate coupons would be redeemed.
What is the profit (loss) from Option Three?

• A)$110,000
• B)$1,200,000
• C)$215,000
• D)($60,000)

Comprehend the physiological aspects and functions of the human sensory system.

Acknowledge the philosophical viewpoints on perception, including Kant's and Locke's contributions.

Understand the principles of psychophysics and the relationship between physical stimuli and sensory experiences.

Explain how the human body detects and interprets various stimuli through specific senses.

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Definitions:

International Test

An examination designed to assess and compare the competencies of students from different countries.

East Asian Nations

Countries located in East Asia, commonly including China, Japan, Mongolia, North Korea, South Korea, and Taiwan.

Math

The study of numbers, quantities, and shapes, and the relationships between them, using symbols and rules.

Science

A systematic enterprise that builds and organizes knowledge in the form of testable explanations and predictions about the universe.