Starowicz Corporation Manufactures Numerous Products, One of Which Is Called

question 387

Multiple Choice

Starowicz Corporation manufactures numerous products, one of which is called Beta10. The company has provided the following data about this product: Management is considering decreasing the price of Beta10 by 7%, from $12.00 to $11.16. The company's marketing managers estimate that this price reduction would increase unit sales by 15%, from 120,000 units to 138,000 units. Assuming that the total traceable fixed expense does not change, what net operating income will product Beta-10 earn at a price of $11.16 if this sales forecast is correct?

• A) −$40,800
• B) $16,080
• C) $379,200
• D) $436,080

Identify and understand the key personality characteristics and dimensions within organizational behavior.

Assess the impact of various personality traits on job performance and organizational citizenship behaviors.

Recognize the role of conscientiousness across different occupational outcomes.

Explain the concept of self-monitoring and its effects on role stress and workplace adjustment.

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Definitions:

Selling Price

The price at which a product or service is offered to the consumer.

Contribution Margin

The contribution margin is the sales revenue minus the variable costs. It shows how much revenue contributes to covering the fixed costs and generating profit.

Fixed Corporate Costs

Expenses that do not vary with production levels, including salaries of executives, rent, and insurance.

Fixed Costs

Expenses that do not change with the level of output or sales over a specific period, such as rent, salaries, or insurance.