Houpe Corporation Produces and Sells a Single Product

question 211

Multiple Choice

Houpe Corporation produces and sells a single product. Data concerning that product appear below:
Fixed expenses are $490,000 per month. The company is currently selling 6,000 units per month. Consider each of the following questions independently.
-This question is to be considered independently of all other questions relating to Houpe Corporation.Refer to the original data when answering this question. The marketing manager believes that a $14,000 increase in the monthly advertising budget would result in a 150 unit increase in monthly sales.What should be the overall effect on the company's monthly net operating income of this change?

• A) increase of $700
• B) increase of $14,700
• C) decrease of $14,000
• D) decrease of $700

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Definitions:

Obsessive-Compulsive Personality Disorder

A mental disorder defined by a consistent pattern of obsession with neatness, striving for flawlessness, and a desire to control one's environment and relationships, often sacrificing adaptability, receptiveness, and productivity.

Con Artist

An individual skilled at deceiving others for personal gain, often through misrepresentation and trickery.

Antisocial Personality Disorder

A psychological disorder characterized by a persistent disregard for moral standards and the rights and emotions of others.

Narcissistic Personality Disorder

A psychiatric condition marked by an inflated sense of self-importance, deep need for excessive attention and admiration, troubled relationships, and a lack of empathy for others.