Answer the Following Questions Using the Information Below

question 98

Multiple Choice

Answer the following questions using the information below:
Gosford Manufacturing produces a single product that sells for $200.Variable costs per unit equal $50.The company expects total fixed costs to be $140 000 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 that management believes that a $48 000 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)320 units
• B)480 units
• C)160 units
• D)None of these answers are correct.

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Definitions:

Hassles

Minor everyday annoyances or problems that, cumulatively, can contribute to stress and affect well-being.

Downturns

Periods or phases characterized by economic decline, reduced activity, or diminished performance.

Distress

A negative emotional state that is a response to stress, characterized by feelings of anxiety, sorrow, or pain.

Approach-avoidance

A psychological conflict that involves being drawn to and simultaneously repelled by the same object, situation, or action.