Answer the Following Questions Using the Information Below

question 118

Multiple Choice

Answer the following questions using the information below:
Ghan Manufacturing produces a single product that sells for $80.Variable costs per unit equal $32.The company expects total fixed costs to be $72 000 for the next month at the projected sales level of 2000 units.In an attempt to improve performance,management is considering a number of alternative actions.Each situation is to be evaluated separately.
-Suppose management believes that a $32 000 increase in the monthly advertising expense will result in a considerable increase in sales.Sales must increase by how much to justify this additional expenditure?

• A)400 units
• B)667 units
• C)800 units
• D)None of these answers are correct.

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Definitions:

Industrial/Organizational Psychology

A branch of psychology that applies psychological theories and principles to organizations, focusing on workplace behavior and how to improve productivity and employee well-being.

Applied Area

A specific domain or field in which certain skills, methodologies, or theories are applied to practical problems.

Empiricism

The philosophical stance that knowledge comes primarily from sensory experience or experimentation.

Common-Sense Approach

A practical and straightforward method of solving problems or understanding concepts that is based on ordinary, everyday reasoning and experiences.