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:

Peptidoglycan

A complex polymer found in the cell walls of most bacteria, providing structural strength and shape.

Waxy Cell Wall

A waxy cell wall is characteristic of plant cells and some microorganisms, providing a protective, waterproof layer.

Mycoplasma

A genus of bacteria that lack a cell wall, making them resistant to many common antibiotics and causing various diseases in humans and animals.

Peptidoglycan

A polymer that makes up the cell walls of most bacteria, consisting of sugars and amino acids, and provides structural strength to the bacterial cell wall.