A Sales Manager Has Projected That an Increase in the Monthly

question 38

Multiple Choice

A sales manager has projected that an increase in the monthly advertising budget to $25,000 will increase monthly sales from 10,000 units to 12,000 units. Each unit sells for
$50 with total variable costs per unit of $40. Monthly fixed expenses, including the current advertising costs of $5,000, total $20,000. Given the above data, what will be the expected impact on net income?

• A)An increase of $5,000.
• B)A decrease of $5,000.
• C)A decrease of $110,000.
• D)No change.

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Definitions:

Accommodation

In psychology, the process of adjusting one's cognitive schemas to incorporate new information.

Adaptation Process

The method through which entities adjust to changes in their environment or conditions to improve survival or function.

Piaget's Approach

A theory of cognitive development that describes how children develop logical thinking through a series of stages, starting from infancy.

Second-grade Classroom

An educational setting for children typically around seven to eight years old, focusing on developing basic academic and social skills.