Tropp Corporation Sells a Product for $10 Per Unit

question 10

Multiple Choice

Tropp Corporation sells a product for $10 per unit.The fixed expenses are $420,000 per month and the unit variable expenses are 60% of the selling price.What sales would be necessary in order for Tropp to realize a profit of 10% of sales?

• A) $1,050,000
• B) $945,000
• C) $1,400,000
• D) $840,000

Understand the elaboration likelihood model, including the central and peripheral routes to persuasion.

Identify factors that influence the effectiveness of persuasive messages, including source credibility and argument strength.

Describe different effects related to persuasion such as the sleeper effect, recency effect, and primacy effect.

Explain the role of physical attractiveness of the communicator in the persuasion process.

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Definitions:

Money Supply

The whole assembly of monetary resources in an economy at a certain time period.

Interest Rate

is the cost of borrowing money, typically expressed as a percentage of the principal, charged by lenders to borrowers.

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and maintaining stability in the financial system.

High Inflation

A condition where the general price levels of goods and services rise rapidly over a period, eroding purchasing power.