Chruch Corporation Manufactures Numerous Products, One of Which Is Called

question 143

Multiple Choice

Chruch Corporation manufactures numerous products, one of which is called Tau-42. The company has provided the following data about this product: Management is considering decreasing the price of Tau-42 by 8%, from $67.00 to $61.64. The company's marketing managers estimate that this price reduction would increase unit sales by 10%, from 52,000 units to 57,200 units. Assuming that the total traceable fixed expense does not change, what net operating income (loss) will product Tau-42 earn at a price of $61.64 if this sales forecast is correct?

• A) $(316,992)
• B) $657,280
• C) $(65,728)
• D) $723,008

---

Definitions:

Utility Function

An equation that quantifies the satisfaction a consumer receives from consuming a combination of goods and services, based on their preferences.

Spaghetti Consumption

The amount of spaghetti that is eaten or consumed over a specified period.

Borda Count

A voting method where voters rank options or candidates, and rankings are converted into scores to determine the winner.

Candidates

Individuals who are considered for or are in the process of being selected for a position, role, award, or any form of recognition.