Answer the Following Questions Using the Information Below

question 193

Multiple Choice

Answer the following questions using the information below:
Frank's Computer Monitors, Inc., currently sells 17" monitors for $270. It has costs of $210. A competitor is bringing a new 17" monitor to market that will sell for $225. Management believes it must lower the price to $225 to compete in the market for 17" monitors. Marketing believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Frank's sales are currently 10,000 monitors per year.
-What is the change in operating income if marketing is correct and only the sales price is changed?

• A)$165,000
• B)$45,000
• C)$(165,000)
• D)$(435,000)

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Definitions:

Ignore All

A command option typically used in spell check that disregards all occurrences of the identified word or issue.

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Change All is a command or function in various software applications that allows users to replace all occurrences of a specific data point, term, or format within a document or dataset with a new value.

Placeholder

A temporary text or image displayed in an input field or other parts of a user interface to guide users or indicate where content should be added.

Text Box

A graphical element in user interfaces and document applications that allows the input, display, and manipulation of text.