Butler Automotive Developed a New Diagnostic Testing Procedure That Is

question 112

Multiple Choice

Butler Automotive developed a new diagnostic testing procedure that is expected to increase sales by $10,000 per month.As more drivers bring in their vehicles,Butler expects to also do more oil changes and brake repairs.As a result,inventory levels of oil and brake parts must be increased by $5,000.Revenues from oil changes and brake jobs are expected to increase by $4,000 per month.An example of a synergistic effect from the new diagnostic testing procedure is the

• A) increase in inventory levels of oil and brake parts.
• B) increase in revenue of $10,000 per month for the diagnostic testing.
• C) increase in revenues from oil changes and brake jobs of $4,000 per month.
• D) increase in all activities totaling $19,000 per month.

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Definitions:

Net Exports

The difference between what a country sells to others and what it buys, represented by exports minus imports.

Goods And Services

The products (goods) and activities (services) that are produced and provided to satisfy consumers' wants and needs.

Trade Balance

The difference between the monetary value of a nation's exports and imports over a certain period, indicating a surplus if exports exceed imports or a deficit otherwise.

Exports

Goods or services that are produced in one country and sold to buyers in another, contributing to the exporting country's economy.