Data Concerning Lemelin Corporation's Single Product Appear Below

question 249

Multiple Choice

Data concerning Lemelin Corporation's single product appear below:
The company is currently selling 7,000 units per month. Fixed expenses are $581,000 per month. Consider each of the following questions independently.
-This question is to be considered independently of all other questions relating to Lemelin Corporation.Refer to the original data when answering this question. The marketing manager would like to cut the selling price by $18 and increase the advertising budget by $37,000 per month.The marketing manager predicts that these two changes would increase monthly sales by 1,600 units.What should be the overall effect on the company's monthly net operating income of this change?

• A) increase of $118,200
• B) increase of $302,200
• C) decrease of $118,200
• D) decrease of $7,800

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Definitions:

Membrane Permeability

The ability of a biological membrane to allow the passage of substances in and out of cells or organelles, determining the cell's level of interaction with its environment.

Neuron Cell Body (Soma)

The part of a neuron that contains the nucleus and most of the cell's organelles; it plays a crucial role in processing and transmitting neural information.

Neuron

A neuron that conveys both electrical and chemical messages across the nervous system.

EPSPs

Excitatory Post-Synaptic Potentials, which are temporary depolarizations of postsynaptic cells that make it more likely for a neuron to fire an action potential.