Answer the Following Questions Using the Information Below

question 32

Multiple Choice

Answer the following questions using the information below:
Ace Books Company currently sells eBook readers for $270.It has costs of $210.A competitor is bringing a new eBook reader to market that will sell for $225.Management believes it must lower the price to $225 to compete in the market for eBook readers.Marketing believes that the new price will cause sales to increase by 10%,even with a new competitor in the market.Ace's sales are currently 10 000 eBook readers per year.
-What is the change in operating profit if Marketing is correct and only the sales price is changed?

• A)$(165 000)
• B)$45 000
• C)$165 000
• D)$(435 000)

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Definitions:

Preprocessor Statement

A directive in programming languages like C that provides instructions to the compiler to process information before actual compilation starts.

Math.h

A header file in the C programming language that provides mathematical functions and constants.

Unix/Linux

A category of operating systems that are powerful, multi-user, and serve as the foundation for many modern platforms.

-lm

An option used in the command line when compiling a program in C or C++ to link the math library, making mathematical functions available to the program.