Use the Information Below to Answer the Following Question(s)

question 49

Multiple Choice

Use the information below to answer the following question(s) .Block Island TV currently sells large televisions for $360.It has costs of $280.A competitor is bringing a new large television to market that will sell for $300.Management believes it must lower the price to $300 to compete in the market for large televisions.Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market.Block Island TV 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)$2,200,000
• B)$600,000
• C)$(2,200,000)
• D)$(5,800,000)
• E)$(1,900,000)

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Definitions:

Flow State

A psychological condition where an individual completely engages in an activity with intense concentration, complete participation, and pleasure.

Explicit Motives

Explicit motives are conscious or verbalized goals that drive an individual's actions towards achieving specific outcomes.

Love And Belonging

A fundamental human need to form and maintain intimate relationships, feel part of a group, and be accepted by others.

Affiliation

The state or process of affiliating or being affiliated with a larger organization, group, or ideology.