Ajax Corporation Is Performing a Sensitivity Analysis on One of Its

question 92

Multiple Choice

Ajax Corporation is performing a sensitivity analysis on one of its product.The product currently sells for $210 per unit, with variable cost of $90 per unit and fixed costs of $400,000.Ajax currently sells 12,000 units of this product.Ajax is considering raising its price by 15%.If prices increase, then it is expected that units sold will decrease by 10%.Calculate the change in operating income.

• A)$196,200 decrease
• B)$248,500 decrease
• C)$196,200 increase
• D)$248,500 increase

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Definitions:

Task Performance

The execution and efficiency in carrying out specific tasks within a job, often measured to evaluate an employee's effectiveness.

Creativity

The ability to generate new ideas, solutions, or innovative approaches to problems.

Diversity

Describes the inclusion of individuals from a wide range of social, ethnic, and cultural backgrounds in a group or organization.

Individual Differences

Variations among individuals in their behavior, emotional processes, and psychological characteristics.