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:

Early Examples

This term generally refers to the first instances or cases of something, often used to illustrate the origins or primitive forms of concepts, objects, practices, or ideas.

Guan Yu

A renowned general serving under the warlord Liu Bei in the late Eastern Han dynasty of China, later deified as a god of war and loyalty.

Pang De

A historical figure from the Three Kingdoms period of China, renowned for his bravery and loyalty as a military general.

Miniaturizes Landscape

The artistic practice of creating a small-scale representation of a landscape in a highly detailed manner, often found in painting, sculpture, and garden design.