Answer the Following Questions Using the Information Below

question 129

Multiple Choice

Answer the following questions using the information below:
Silicon Technologies, currently sells 17" monitors for $270. It has costs of $210. A competitor is bringing a new 17" monitor to market that will sell for $230. Management believes it must lower the price to $230 to compete in the market for 17" monitors. Silicon believes that the new price will cause sales to increase by 10%, even with a new competitor in the market. Silicon's sales are currently 5,000 monitors per year.
-What is the change in operating income if marketing manager is correct and only the sales price is changed?

• A) $200,000
• B) $190,000
• C) $(190,000)
• D) $(200,000)

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Definitions:

Presentation Stage

The phase in project development or marketing where ideas, results, or products are formally shown to stakeholders or potential customers.

Gaining Attention

The process of capturing the interest or focus of an audience or market through various strategies or actions.

Stimulate Interest

The act of encouraging or arousing curiosity or attention towards something.

Preapproach Stage

The stage in the sales process where the salesperson gathers information and prepares a tailored approach before making contact with a prospective customer.