Craylon Manufacturing Produces a Single Product That Sells for $130

question 43

Multiple Choice

Craylon Manufacturing produces a single product that sells for $130. Variable costs per unit equal $30. The company expects total fixed costs to be $60,000 for the next month at the projected sales level of 1,200 units. In an attempt to improve performance, management is considering a number of alternative actions. Each situation is to be evaluated separately. Suppose that management believes that a $12,000 increase in the monthly advertising expense will result in a considerable increase in sales. Sales must increase by ________ to justify this additional expenditure.

• A) 93 units
• B) 120 units
• C) 400 units
• D) 924 units

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Definitions:

Sociocentric Conception

Refers to a perspective prioritizing group or societal norms and values over individual ones, emphasizing the interconnectedness of individuals within a society.

Collectivism

A social and cultural principle emphasizing the importance of groups and the collective over the preferences and rights of individuals.

Interdependence

A mutual reliance between two or more groups or organisms, often resulting in a symbiotic relationship or collaboration.

Cooperation

The process of groups or individuals working together for a common goal or benefit.