Cobble Corporation Produces and Sells a Single Product

question 181

Multiple Choice

Cobble Corporation produces and sells a single product.Data concerning that product appear below: Fixed expenses are $499,000 per month.The company is currently selling 5,000 units per month.The marketing manager would like to cut the selling price by $13 and increase the advertising budget by $33,000 per month.The marketing manager predicts that these two changes would increase monthly sales by 900 units.What should be the overall effect on the company's monthly net operating income of this change?

• A)increase of $56,100
• B)decrease of $8,900
• C)increase of $99,300
• D)decrease of $56,100

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Definitions:

Narcissistic

Relating to narcissism, a personality trait characterized by an exaggerated sense of self-importance and a lack of empathy for others.

Regressing

The act of returning to a previous or less advanced state or condition, often observed under stress or in psychological contexts.

Object Relations Theory

A model for understanding individuals by examining how they think about other people.

Understanding Individuals

The process of comprehending a person's characteristics, behaviors, and motivations by observing or interacting with them.