Data Concerning Dorazio Corporation's Single Product Appear Below

question 68

Multiple Choice

Data concerning Dorazio Corporation's single product appear below:
Fixed expenses are $87,000 per month.The company is currently selling 1,000 units per month.Management is considering using a new component that would increase the unit variable cost by $28.Since the new component would increase the features of the company's product,the marketing manager predicts that monthly sales would increase by 400 units.What should be the overall effect on the company's monthly net operating income of this change?

• A) increase of $5,600
• B) increase of $33,600
• C) decrease of $5,600
• D) decrease of $33,600

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Definitions:

Glycolytic Energy System

A metabolic pathway that processes glucose for energy, significant during short-term, high-intensity exercises.

ATP-CP Energy System

A rapid energy-producing system that uses adenosine triphosphate and creatine phosphate to generate energy for short, explosive activities.

Aerobic Energy System

The system in the body that relies on oxygen for the production of energy, primarily supporting activities of long duration.

Best Food Choice

The most nutritious and healthful option selected from available foods, considering factors like vitamins, minerals, and overall dietary needs.