Answer the Following Question(s)using the Information Below

question 115

Multiple Choice

Answer the following question(s) using the information below.Sheltar's TV currently sells small televisions for $180.It has costs of $140.A competitor is bringing a new small television to market that will sell for $150.Management believes it must lower the price to $150 to compete in the market for small televisions.Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market.Sheltar's sales are currently 100,000 televisions per year.
-What is the change in operating income if marketing is correct and only the sales price is changed?

• A)$125,000
• B)$950,000
• C)$(3,450,000)
• D)$(2,900,000)
• E)$2,350,000)

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Definitions:

Exhibit Conformity

The act of matching attitudes, beliefs, and behaviors to group norms or societal standards.

Psychology Experiment

A research method in psychology that tests hypotheses by manipulating and controlling variables.

Dramatic Decrease

A significant and rapid reduction in quantity or frequency.

Milgram's Experimental Procedure

A psychological experiment conducted by Stanley Milgram to study obedience to authority, where participants were instructed to administer electric shocks to another person.