Lagerfield Company Reported the Following Results from the Sale of 5,000

question 91

Multiple Choice

Lagerfield Company reported the following results from the sale of 5,000 hammers in May: sales $200,000, variable costs $120,000, fixed costs $60,000, and net income $20,000. Assume that Lagerfield increases the selling price of hammers by 10% on June 1. How many hammers will have to be sold in June to maintain the same level of net income?

• A) 4,000
• B) 4,300
• C) 4,500
• D) 5,000

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Definitions:

Priming

A method for measuring implicit memory in which a person reads or listens to information and is later tested to see whether the information affects performance on another type of task.

Three-Box Model

A model of memory that suggests information processing in three stages: sensory memory, short-term memory, and long-term memory.

Sequential Manner

A process or method that follows a specific order or sequence, often used to describe steps in a procedure or task.

Long-Term Memory

The phase or type of memory responsible for the storage of information over an extended period, ranging from a few minutes to a lifetime.