Answer the Following Questions Using the Information Below

question 175

Multiple Choice

Answer the following questions using the information below:
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)

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Definitions:

Intimate Terrorism

A form of domestic violence characterized by one partner exerting control over the other through fear, threats, and aggression.

Intimate Partner Violence

A form of domestic violence involving harm or distress caused by a current or former partner or spouse, regardless of gender or marital status.

Multiple

Having or relating to several or many of something; often used to describe instances, occurrences, or categories.

Escalating Control

A pattern of behavior where an individual increasingly asserts power and dominion over another, often in the context of an abusive relationship.