Answer the Following Questions Using the Information Below

question 14

Multiple Choice

Answer the following questions using the information below:
Perth TV currently sells flat screen televisions for $180.It has costs of $140.A competitor is bringing a new flat screen television to market that will sell for $150.Perth believes it must lower the price of its television sets to $150 to remain competitive.Marketing believes that the new price will cause sales to increase by 10%,even with the new competitor in the market.Perth's sales are currently 100 000 televisions per year.
-What is the change in operating profit if marketing is correct and only the sales price is changed?

• A)$(1 100 000)
• B)$1 100 000
• C)$300 000
• D)$(2 900 000)

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Definitions:

Invalid Arguments

Arguments that fail to follow logical form, where the conclusion does not logically follow from the premises.

Unsound

Not based on solid reasoning or logic; flawed or lacking in stability.

Valid Deductive Arguments

Arguments in which, if the premises are true, the conclusion must also be true, demonstrating a logical structure that ensures the truth of the conclusion.

Truth

The quality or state of being in accordance with fact or reality.