Answer the Following Questions Using the Information Below

question 165

Multiple Choice

Answer the following questions using the information below:
Cox Lighting manufactures table lamps and is considering raising the price by $20 a unit for the coming year. With a $20 price increase, demand is expected to fall by 2,000 units.

-Would you recommend the $20 price increase?

• A)No, because demand decreased.
• B)No, because the selling price increases.
• C)Yes, because contribution margin per unit increases.
• D)Yes, because operating income increases.

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Definitions:

Psychological Instruments

Tools and tests used by psychologists to measure mental functions and behaviors.

Dubious Distinction

A questionable or uncertain honor or recognition, often implying that the merit of the distinction is not entirely positive.

Defense Mechanism

Psychological strategies brought into play by individuals or the ego to protect against anxiety arising from unacceptable thoughts or feelings.

Subconsciously Attributes

Subconsciously attributes refer to qualities or features that are assigned or associated with something without conscious awareness.