A Sales Manager Has Projected That an Increase in the Monthly

question 40

Multiple Choice

A sales manager has projected that an increase in the monthly advertising budget to $10,000 will increase monthly sales from 10,000 units to 12,000 units.Each unit sells for $50 with total variable costs per unit of $40.Monthly fixed expenses,including the current advertising costs of $5,000,total $20,000.Given the above data,what will be the expected impact on net income?

• A) An increase of $5,000.
• B) An increase of $10,000.
• C) An increase of $15,000.
• D) An increase of $20,000.

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Definitions:

Electrical Pulses

Rapid bursts of electrical energy that are used in various applications, from medical treatments to electronic devices.

Keypad

A set of keys on a device or machine, arranged in a systematic way, that are pressed to input data or operate a system.

McLuhan

Marshall McLuhan, a media theorist known for coining the expressions "the medium is the message" and "global village," focusing on how media affects societal structures and individual perceptions.

Medium

In sociological contexts, refers to a channel of communication that influences or facilitates social interaction or the dissemination of information.